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Sativa Magazine Online Issue No. 16 May 2014

MAY 2014

Jason Osburn Mekinsey M. Molinaro

All contents ©2014 Sativa Magazine. Sativa Magazine is published and distributed by Vanguard Click Publishing, Seattle, WA. Sativa Magazine does not condone or endorse any illegal use of any products or services advertised herein. All material is for educational purposes only. Sativa Magazine recommends consulting an attorney before considering any business decision or venture. We take no responsibility for the actions of our readers.

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Grooming the landscape for legalization

The test results are in — well, some of them at least. The landscape for legalization is changing rapidly. Recent talk of reclassification is giving the industry hope — it would certainly be a game changer. One answer as to how that plays out will be the results we see in Colorado and Washington — the test tube for the future of recreational Cannabis legalization. Not everyone in the industry is supportive. In Washington many of our medical rights are being stripped from us to open the path to legalization of recreational use and regulation. Taxes and profit expectations by the state are a motivating factor for many of the decisions being made, causing the Liquor Control Board to draft plans without keeping the medical patient in mind. With the limits they are trying to put on medical patients, the seriously ill will suffer. We have a loud voice here in Washington and a strong activist community; I am confident we will meet somewhere in the middle. I hope some of the information we provide plays a part in moving these efforts forward. We want to give you a bird’s eye view of current changes. The polls are in and worldwide support is jumping above 75 percent for medical use and above 50 percent for recreational use. Whatever the polls say, we all know where it’s headed. The question is, how long will it

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take? This test in Colorado and Washington proves that adults can make up our own minds based on available information. It also shows that we can work together to design a system that works for everyone. The failure of alcohol prohibition is a great example of how prohibition does not work — it only increases desire. When told we can’t have something, we want it more. There is no divide between the rich or poor when it comes to desire — we all want to escape at times. When it comes to Cannabis and hemp, we have fought long enough, and we are winning! Cannabis and hemp will soon be sold everywhere. Medicine will be at the pharmacy; hemp seed and food products will be available at grocery stores and farmers’ markets, etc. The Cannabis plant will never be taken from the home cultivator — it’s a passion unlike any other. I have one thing to tell everyone who thinks Cannabis is more dangerous than LSD, heroin or alcohol — I want what you’ve got, because you MUST be high!

Michael Carter Editor-in-Chief michael@sativamagazine.com

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MAY 2014 COLUMNS Business Highdeas The [train, boat, bus] departs at 4:20! Taking vacation to the next bardo.

Bright Shiny Objects Sustainable hemp tote bag And while on vacation, grab this bag to tote your swimsuit.

Incredible Medibles Billy’s baked beans The snow is finally gone. Time for barbeques!

FEATURES

RECREATIONAL TEST RESULTS Ann Arbor Hash Bash/Monroe Street Fair Hippy KK reports on Michigan’s annual rite of spring.

Reschedule It! Is the tide finally turning? Miggy 420 weighs in.

What’s Changing How are Washington and Colorado shaping new policy?

Economic Bounce Back Someone’s pushed the reset button. Now is the time.

Building Amsterdam What does it take to build a tourist mecca? Part one.

Large-Scale Outdoor Cultivation Which states are best for big outdoor grow ops?

Cannabusiness — Fact or Fiction? March was a wild month for stocks, but there’s still time to jump in.

What Does Legalization Look Like in Other Countries? America is still giddy, but other countries are legal, too.

Medical vs. Recreational 68 How has Colorado’s recreational market affected medical sales and taxes. Cannabis Portfolio Gorgeous art from Whit Baylis and Jessica Boggs. SATIVAMAGAZINE.COM

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BUSINESS HIGHDEAS HIPPY KK/CARTER

The [train, boat, bus] departs at 4:20!

N ow t h a t Wa s h i n g t o n a n d Colorado have legalized recreational Cannabis, it isn’t too far-fetched to picture a Cannabis boat touring down the Colorado River where it flows through Colorado or take in the magnificent view of Mt. Hood on the Columbia River. In either place, you’re guaranteed to take in some beautiful sights that can’t be seen from any other vantage point than on the water. All while kicking back, relaxing and enjoying some of your favorite Cannabis provided by the Cannabis boat touring company.

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GH I H

Discount rates could be offered to those who are willing to bring an ample supply of Cannabis that can be offered to other passengers. This in turn, has the potential to increase your business on land. Rent the entire Cannabis boat for a big smoke out, an office meeting

SEA

Cannabis boat tours Riverboats come in all shapes and sizes and can be found across the United States and other countries. Some are strictly for the benefit of touring an area from a different viewpoint than roadside, while others may provide a specific specialty such as gambling or a romantic candlelit dinner for two. Whatever their specialty, you have to admit, riverboats are pretty cool with that big paddlewheel on the back.

or celebration of any kind. Take a Cannabis boat tour and enjoy the view, the good company that surrounds you, the Cannabis being consumed and, while you’re at it, network and market your brand. Get your name out there! Make it an event never to be forgotten

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How about camping outside and gathering around a campfire while everyone is enjoying and sharing Cannabis? and make a lasting impression upon those that need impressing.

either or is bound to provide a memorable experience.

Once Cannabis is legalized federally, maritime laws may change. However, the use of Cannabis on open water (meaning oceans) is currently not permitted no matter how far out you travel, but if you reside in Colorado or Washington, and the Cannabis boat tour doesn’t leave the state, it may be completely legal to consume Cannabis on local waterways. Check with your state to find out the particulars.

Ideally, a Cannabis cabin train ride would be from Seattle, Wash. to Denver, Colo., a ride that, with at least one stop, is currently a 20-hour train ride. In an automobile, it is a 1,134-mile drive. However, with the states between Washington and Colorado not yet having recreational legalization, at this point in time, it’s best to leave the traveling in state. But long, out-of-state trips are definitely something to keep in mind for future business planning.

AVAILABLE URLS: WWW.WETSMOKETOUR.COM WWW.RIVERBOATREFER.COM WWW.LIQUIDSEMINAR.COM WWW.SMOKETIDE.COM WWW.EBBLEADS.COM WWW.FLUXTOUR.COM Cannabis cabin train ride Train rides are relaxing and scenic; add a little Cannabis and it’s a whole new kind of ride. Now, this particular Highdea is titled “Cannabis cabin train ride” but it isn’t just limited to trains. It could be a bus as well, whether it’s chartered or privately owned,

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Get ting bac k o n trac k now, whether riding by train or bus, Cannabis cabin rides can be a one-day trip, several days or even a week. Both public and private Cannabis cabin rides could be offered in conjunction with a well-planned out schedule, and is sure to be a big hit! On day trips, the driver or company would provide the rider with an itinerary, including departure time, all stops and estimated times as well as drop-off ETA. For trips overnight or longer, riders would

receive the same information, i.e. departure time, all stop information as well as where they would be lodging for the evening. How cool would it be to travel on a Cannabis bus ride only to check in at a Bud and Breakfast across the state that you didn’t know about? Or better yet, for those that love the outdoors, how about camping outside and gathering around a campfire while everyone is enjoying and sharing Cannabis? This Highdea could even be allinclusive for trips that are longer than a day. This has the potential to be absolutely huge when all states legalize recreational Cannabis. Just imagine the trips to all the 420 events across the country. Let the partying begin but be safe in your travels and be sure that the driver is not consuming Cannabis! AVAILABLE URLS: WWW.JOINTEDJOURNEY.COM WWW.MELLOWRAILS.COM WWW.CANNACONVOY.COM WWW.SMOKERAILS.COM WWW.CANNACABOOSE.COM WWW.LEGALSTATETOUR.COM S SATIVAMAGAZINE.COM

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BRIGHT SHINY OBJECTS HIPPY KK

Product review: Sustainable hemp tote bag

Rating: 5++ nuggs Even though they are horrible for the environment, most of you, myself included, have a pantry full of plastic bags. You know: “paper or plastic?” Well, in Huntington Beach, Calif., and other cities, there’s a ban on these bags. It was mainly for that reason that Patti Gordon of HempRadio and PatiCakes Edibles designed and now produces this sustainable hemp tote bag. Bye-bye plastic, hello hemp! I love this bag for many reasons. Mainly for the fact that it is made of 35 percent hemp (as well as 35 percent cotton and 30 percent polyethelene) but also for the fact that the size of it measures 12 and three-quarters inches high by 17 inches long by 10 inches wide and has long durable straps that measure 28 inches from end to end. That’s a 14-inch strap that makes for comfortable and easy toting. There is also an inside pocket that measures seven and one-quarter inches by six and one-half inches. It’s huge and

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can fit just about anything inside, whether it’s a ton of groceries or everything one needs to take on a trip to the beach. Patti’s sustainable hemp tote bag is perfect for any need! The bag itself is beige with a black logo on the front. Patti states that: “the response has been overwhelming and soon we will be designing other hemp products. Pet hemp products also.” I would love to see pet hemp beds and the sustainable hemp tote bag available in various sizes as well, but the bag as is, is perfect in every aspect, so I can see where the response would be overwhelming. I absolutely love it and so will you! Patti takes orders personally and has recently received a large order for an upscale market on the east coast and is in the process of completing an order for an undisclosed location in Las Vegas. It will be great to one day be able to buy these bags in local stores all over the world and promote the use of hemp as well as Patti’s business.

I would love to replace all the plastic bags I have stashed away in my pantry with Patti’s sustainable hemp tote bags. Never having to reply, “plastic” again when asked for my preference, I will eagerly hand over a couple of Patti’s sustainable hemp tote bags that will hold more than that of ten or more plastic bags, and at the same t i m e, h e l p s a ve o u r environment. Less plastic , more hemp! Excellent produ c t, Pat ti. Congratulations! To place an order, call Patti Gordon at (714) 287-0329 HempRadio: http:// www.hempradio. com/ HempRadio on Facebook: https:// www.facebook.com/ Hempradio?ref=hi PatiCakes Edibles on Facebook: https://www.facebook.com/ paticakes.edibles

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INCREDIBLE MEDIBLES HIPPY KK

Billy’s Baked Beans Whew! I was beginning to think after the winter we had, it was never going to warm up. May is finally here, the windows are open, barbeques have been pulled out for the summer months and it’s finally time to enjoy being outside. May is the time for barbecues — gatherings of friends and family are planned and everybody would rather be outside than in. This month’s Incredible Medible is one of my all-time favorites for these occasions. It is so easy to make and delicious, you’ll want to do like I do and make an extra batch so there will be some to enjoy later. Because if you only make one, you can count on it all being eaten! To make it simpler for you, I have just listed the main ingredients to Billy’s baked beans. JD and I alter it by adding honey or Agave Nectar to our baked beans along with some other additional items, but you might not like our alterations so feel free to add whatever it is your heart desires. Yield: 20 servings Prep Time: 40 minutes Ingredients: 28 oz. cans baked beans 3 2 grams hash 1 pound bacon, strips cut into thirds 1 or 2 packages mini smoky links Barbeque sauce Toothpicks

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1 Assemble ingredients. Preheat oven to 400°F 2 Prepare mini smokey links by wrapping bacon around each smokey link one and-a-half times. Pierce a toothpick all the way through bacon and smokey link leaving the majority of the toothpick sticking out the top so it can be used as a handle. Set aside. 3 In a medium size sauce pan, heat up the beans and hash over medium-high heat for about 5 minutes to fully incorporate the hash into the beans. 4 Pour the baked beans into a 9 x 13 glass baking dish (at this time, I’m using a 7 x 9 to make a smaller portion). Place bacon-wrapped mini smokey links on top of beans with the toothpicks pointing up. 5 Top bacon-wrapped smokey links with BBQ sauce. Bake in preheated oven until bacon is cooked all the way through, about 30 minutes. 6 Remove from oven and allow to cool for about 10 minutes before serving. Caution: Contents are extremely hot! A 9 x 13 dish will provide 20 100-mg THC servings. This recipe can easily be increased or decreased, just be sure to recalculate the hash properly to keep servings at a reasonable proportion. If traveling with this dish, it is recommend to place it on a towel in case it spills or leaks during travel. And here my friends, is your monthly reminder: Do not operate a vehicle or machinery after consuming medibles. Enjoy and happy barbecuing! S

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iCannabis: The Technology Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

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HASH Ann Arbor’s Annual

Above: TROG’s poster for the event.

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BASH

Homage to Herb-dom SATIVAMAGAZINE.COM

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Story and photos by Hippy KK The Ann Arbor, Mich. Hash Bash has had quite a history. The event grew out of the public response to a 9 ½- to 10-year prison sentence that was handed down to jazz writer, poet and underground newspaper publisher John Sinclair — an unjust consequence for giving two joints to undercover police officers in December of 1966. First came the John Sinclair Freedom Rally that was held on Dec. 10, 1971

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at the Crisler Arena, where such famous names as John Lennon, Bob Seger, Stevie Wonder and others gathered together, participating in advocating for Sinclair’s release. Three days after the rally, the Michigan Supreme Court released Sinclair from prison after having served almost a year and a half, while it considered the constitutionality of

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Opposite page: The bash crowd listens to speakers. This page: clockwise, from upper left: Adam Brook; Charmie Gholson; Ed Rosenthal; t-shirt; Rick Thompson; Hippy KK and Ed Rosenthal.

the law. Freedom fighters and Cannabis activist were ecstatic. The Court completed its review and overturned Sinclair’s conviction on March 9, 1972, declaring that the statute violated the constitution’s equal protection clause for erroneously classifying Cannabis as a narcotic. The drug was reclassified by the legislature, and possession was deemed a misdemeanor. But the new law did not take

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effect until April 3, 1972, leaving a window of time in which there was no state law on the books. To celebrate, founders suggested Ann Arbor’s first “Hash Festival” on April 1, 1972. Festivities would begin at high noon on the University of Michigan campus. In 1974, the name was changed to the Hash Bash and the event continued to be held on

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April 1st through 1990. In 1991, it was moved to the first Saturday of April. With the exception of the rally, the location of the bash has always remained at the same time and location. Returning this year after serving a two-year prison sentence for a weapons violation, long-time Hash Bash organizer and emcee Adam Brook received a warm welcome.

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Brook started off this year’s event reminding everyone that, “smoking marijuana is still illegal on campus.” However, that didn’t stop the thousands in attendance from sparking up on command while four or five officers stood off to the side in the background. Brook, along with the founder of Michigan Moms United to End the War on Drug’s Charmie Gholson and Mark Passerini, co-founder of the Om of

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Opposite page: clockwise, from upper left: Michigan NORML tent; event garb; a chilly but enthusiastic crowd. This page: clockwise, from upper left: Hippy KK and John Sinclair; Ann Arbor’s finest; Dooby Crew member; warding off the chill; Canna-pants.

Medicine, emceed this year’s event. Speakers this year included the man himself, John Sinclair, the guru of ganja Ed Rosenthal, MiNORML Executive Director Matthew Abel, State Representative Jeff Irwin (D –Ann Arbor), City Council member Sabra Briere, DJ Short, Tim Beck, Rick Thompson, Michael Colton, Dakota Serna and Marvin Surowitz.

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Although the city of Ann Arbor has some of the most lenient penalties for individuals caught in possession of Cannabis, the university police adhere to state laws, even during Hash Bash. But overall, interactions were generally civil on this fair-weathered Saturday. University police made only one arrest while attendees enjoyed speakers, vendors, live music and the company that surrounded them. Not too shabby,

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considering over 8,000 people attended this year’s event.

thousands. “But that’s only part one. Now we Facebook those photos.”

At a specific time, Cannabis activist and writer Rick Thompson encouraged attendees to take pictures with their phones and then post those pictures on their social media sites. “We’re all going to take photos of what’s going on at Hash Bash. Are you ready?” he asked the crowd of

Law student Reid Murdoch, executive director of Law Students for Sensible Drug Policy, collected signatures for state Rep. Jeff Irwin (D– Ann Arbor) and the 2016 Cannabis legalization efforts. “It’s a beautiful event,” Murdoch said. “It’s the longest running drug policy event in the

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Opposite page, top: Cannabus; bottom: a haze settles over the crowd. This page: clockwise, from upper left: Lush Lighting crew; Canna Cure crew; BDT Smoke Shop tent; Betsy and Julie from ArborSide.

country. I’m just really honored to be a part of it. It’s a cultural tradition.” After the Hash Bash, the crowds of thousands would gather two blocks south to partake in the 13th annual Monroe Street Fair, where more speeches could be heard as well as live music. This year’s fair was sponsored by Lush Lighting, Pack N Stash, ArborSide, Canna Cure, Jackson

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County Compassion Club, Ann Arbor Hustles Smarter, 3rd Coast Compassion Center, Clarion Hotel & Conference Center, Ann Arbor Health Collective, The Cannabis Council, ASA, Depot Town Dispensary, MiNORML and BDT Smoke Shop. Organized by Charles Strackbein (owner of BDT Smoke Shop), the Monroe Street Fair is slated to

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Recreational Test Results • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Top left: Ann Arbor Hustles Smarter tent; Right: Ed Rosenthal publications. Bottom: Chilly but chillin’.

run from noon to 6:00 p.m. However, until the Hash Bash is over, the Monroe Street Fair doesn’t really kick into high gear. This year’s artwork for the Monroe Street Fair was drawn by TROG, a famous underground artist located in Australia. Guest speakers included Ed Rosenthal, Charmie Gholson, Jamie Lowell, Rick Thompson, Matt Abel, Christeen Landino and Marvin Marvin. Music performances included Chief Greenbud, Lil Wyte, Bizarre, Kung Fu Lovers, Covert,

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RuffiO, Skinny Pigeons, DRIX, Infatuations, Mt. Thelonious, Black Note Graffiti, This is life This is living, Zelcova and Baoku & The Image Afro-beat Band. This year’s event kicked off at 10:30 a.m. at the Ann Arbor Federal Building, located at 236 E. Liberty Street with a protest against drug enforcement raids, and ended with an after party that began at 8:30 p.m. at the Blind Pig on S. First Street. S

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Growing in Soil? Hereâ&#x20AC;&#x2122;s a head start.

Find out more at: www.scientificsoils.com

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Recreational Test Results • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

By Miggy 420 Illustration by May Greene

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SCHEDULE IT!

want to believe, I really do as I close my eyes, click my heels three times, tell myself I think I can, I think I can while holding onto my rabbit’s foot and making the sign of the cross and saying a prayer. Recently, while testifying before a Congressional Subcommittee Budget hearing, Eric Holder testified that the Department of Justice would be willing to work with Congress on rescheduling the plant. http://www.youtube.com/watch?v=skO37q3CT A4&feature=share&t=2h35m56s (This happens 2 hours and 35 minutes into the video.) When legalization finally happens we won’t be able to point to one group or person that made it happen — but to the moment — the moment when Cannabis is rescheduled accordingly and prisoners are released for their victimless “crimes.” The truth behind Cannabis is like a stone thrown into a pond with multiple ripples or a snowball rolling down a hill building momentum. The truth is getting out there. I want to believe so badly that I don’t have to fear for my personal safety when I travel from state to state, when I can smoke safely in the privacy of my hotel room or in a secluded, open location, without fear of police, fear of ignorance, fear for my personal freedom and the implications that result when I am arrested for just being me. After Holder made the following statement: “...be more than glad to work with Congress

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if there’s a desire to look at and reexamine how the drug is scheduled,” in regards to accusations that the department selectively enforces the law, the blogosphere lit up and so did newswires, all pointing towards the common-sense policy that should already be in place — the rescheduling of Cannabis that does have medicinal values, THC and all. I sat through four hours of video just to hear a 30-second snippet showing that some people have a common-sense approach to what is right vs. wrong. Some people will boast that this is great news — and it is — but during those four hours I also saw a lot of fear mongering from people in positions of authority that don’t give a damn about you and me. The argument that Cannabis causes addiction is changing; it is less addictive than cigarettes and cheesecake — it has been proven that it is medicinal. It seems Eric Holder did not stand up well when confronted about the medicinal value of Cannabis, even though the Department of Health owns patent US# 6630507, during his testimony to the subcommittee. Some politicians want to cry foul and insist that legalization will lead to increased crime, and say they’re worried about the effect on our country’s children. We must remember that there are currently 50 people serving life sentences for a crime that has no victim. In case President Obama, Fox News or any other authority figure didn’t get the memo — most Americans don’t believe in reefer

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madness. I want to believe more than anything that Cannabis will get its chance to be rescheduled in light of government-owned patents and proven health benefits, prison populations will decrease, and that Americans who believe in natural medicines can live in peace without fear of prison or having their rights taken away. The moon and the stars are aligning for Cannabis reform, the polls are in our favor and whenever science is involved, Cannabis wins. Cannabis is safer than a lot of over-the-counter pharmaceuticals. Americans, consumers and non-consumers, are waking up to the great lie. According to the highly revered, non-biased Gallup poll of October 2013, the majority of educated and aware Americans believe Cannabis should be legal. That’s more than half of your nation, half of the people for which you work. In a perfect world, the majority consensus is also the majority moral barometer and in this case, the poll included multiple races, sex, and ages. The only real issue is that the minority can incarcerate you, confiscate your belongings, and unfairly punish you for something that really isn’t a crime or unhealthy. In an NBC News/Wall Street Journal survey of March 5, 2014, Cannabis is rated the least harmful when compared to tobacco, alcohol, and sugar. My only thinking here is that the people polled were asked to be impartial and to base their decision on their social understanding. Despite the medicinal properties and values of this wonderful plant, it is also used recreationally — just like alcohol, cigarettes, and coffee — the fact that something makes you feel better for a moment and is used for pleasure can be called recreational, the same can be

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said about masturbation and ice cream. That being said, according to the CNN/ORC poll of January 3–5, 2014, 79 percent of Americans believe there should be no jail sentences handed out because of a plant. In a CBS News poll taken Jan 17–21, 2014 the majority 62 percent believe the decision should be left to individual states. I think that’s a cowardly way of avoiding making a decision about something that shouldn’t really be a decision — but a right — like gay marriage. I thought being an American meant being able to pursue happiness and personal freedom, not being subject to censorship and imprisonment. During the Nazi’s reign in Germany, at what point did people not flee when they had to wear stars and were given tattoos like cattle? Could it have been stopped if the majority had stood up and said no? While DEA raids continue and people lie in cells for feeding their families and providing medicine to their local communities, how can people continue to sit idle? American society is starting to understand the truth about the great Cannabis conspiracy, and are becoming angry enough to vote for truth. Everyday someone spends their day in jail staring at the walls, forced to eat what is given them, told to sleep when lights are out, not allowed any personal freedom and worried about threats to their personal safety, because of the lie that Cannabis is bad and that personal freedom is dangerous. I want to believe that our government is finally ready to give Americans the right to make personal, adult choices and be held accountable for their own decisions. Dear Government: You haven’t gotten the memo, but it’s coming. We are not the enemy. You are.S

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What’s

CHANGING By Natalie Covate Photo Treatments by Andy Rostar

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The legalization of Cannabis in Colorado and Washington represents a big step for American supporters of legalizing. The law’s passing has spurred numerous policy changes in those states and other countries allowing for easier Cannabis access and consumption. However, the herb, those who use it and those regulating its use still face some signiﬁcant challenges. The Naysayers Even though states have declared Cannabis legal and the Department of Justice has decided not to prosecute recreational users in states where Cannabis is legal, government officials are still hesitant to support it. Earlier this year, James L. Capra, the chief of operations at the Drug Enforcement Administration, unsurprisingly called the legalization of Cannabis “reckless and irresponsible.” DEA chief Michele Leonhart recently said that the ease of access to Cannabis make federal agents eager to “fight harder.” For example, Leonhart recently asked supporters of legalization to think of their dogs first, as Cannabis can be toxic to dogs and legalizing recreational Cannabis could increase access to their human’s stash.

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The Obama administration is, officially speaking, sternly anti-legalization. But, in an interview with the New Yorker magazine in January, President Barack Obama said that Cannabis is not any more dangerous than alcohol. In the same interview, however, Obama said that he was worried about some of the ramifications of legalizing Cannabis, specifically with other drugs. What if studies are done that find that small amounts of cocaine or meth are not harmful to a person in the long run? Obama stated that he is worried about the line-drawing challenges that may arise in the cases of these drugs if Cannabis is already legal. Even though it has been documented that Obama smoked Cannabis in his youth, the

MAY 2014

president says that he does not recommend it to his children or anybody and calls smoking it a bad habit and a vice. Colorado residents say they have been the targets of random, unlawful vehicle searches outside Colorado in an investigation by the Kansas City Star. In Kansas, which borders Colorado to the east, it is still illegal to possess Cannabis. Drivers with license plates from Colorado report that they believe they were targeted for Cannabis searches. A spokesman for Kansas’s highway patrol denies such profiling taking place, but three of nine individuals booked in Kansas jails this January were documented to be residents of Colorado. A Colorado man is also suing the Idaho police for license plate profiling. Darien Roseen says he was unlawfully detained while driving through Idaho and searched for Cannabis on the basis of his Colorado license plates in January 2013, well before recreational Cannabis was available for purchase in Colorado. Even though it has been possible to purchase recreational Cannabis in Colorado since January, employers in Colorado are not required to tolerate use. The law in Colorado states that employers may prohibit drug use, and courts have recently ruled that employees can be terminated both for being high on the job or for enjoying Cannabis on their personal time, even if it is smoked in private. Likewise, employers in other states may fire employees who legally got high in Colorado or Washington. Despite being legal in these states, Cannabis is still considered an illegal drug on the federal level, creating this legal loophole.

The Questions Many of the trickiest questions remain

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unanswered. For example, driving while high could get you a DUI, but it is difficult for a specific test to determine when someone is high. It is widely accepted that 5 nanograms of active THC per milliliter of blood is considered impaired, even though some experts say this limit is far too high and that many stonedwhile-driving incidents occur with as little as one nanogram of THC per milliliter of blood. But, it is also understood that, unlike alcohol, THC affects different people in different ways — someone who tokes five days a week may have a five-nanogram concentration of THC in their blood even one day after smoking. The only reliable test for THC concentration is a blood test, which must be performed by a medical professional and results are not available until about two to six weeks after blood is drawn. Contrastingly, when you compare a chronic alcoholic with a blood alcohol concentration of 0.08 percent to someone who rarely drinks but has the same blood alcohol concentration, they often will both struggle to stand on one foot. An officer can perform Breathalyzer tests with reliable results available in about one minute. As for roadside coordination tests, people that are high rarely struggle in the same way that people that are drunk do. Oftentimes, people under the influence of weed are capable of walking in a straight line or following a pen with their eyes. Impairment is primarily apparent when something unexpected happens or when the subject is trying to multitask.

The Support Despite these difficulties, legalization has also lead to many changes benefitting the movement. In January, the first month of legal Cannabis sales, Colorado earned about

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The federal government has recently approved a study by the University of Arizona to evaluate whether the effects of medicinal marijuana will aid veterans suffering from post-traumatic stress. $2 million in tax revenue from recreational Cannabis alone — about the same amount experts predicted, according to CNN. When combined with medical Cannabis sales, that number jumps to $3.5 million. Crime rates have also declined considerably among certain demographics in Colorado from January to February of 2014 when compared to the same time period in 2013, according to numbers released by the Colorado Department of Public Safety. Property crime fell by 14.6 percent in Denver. Homicide rates fell by 66.7 percent. The number of robberies decreased by seven percent. The federal government has recently approved a study by the University of Arizona to evaluate whether the effects of medicinal Cannabis will aid veterans suffering from posttraumatic stress. Other countries are currently considering experimenting with their own legalization laws. Cannabis is currently illegal in Jamaica, but recent legalization in the United States has given momentum to activists hoping to legalize. Uruguay became the first nation to approve Cannabis legalization and regulation in December. This month, Uruguayans will be permitted to grow, buy and sell Cannabis, and the

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Uruguayan government plans to grow its own Cannabis fields, to be harvested, taxed and sold in regulated pharmacies. However, laying down the infrastructure for this level of Cannabis growth takes time. For now, the government’s stash may come from Canadian medicinal Cannabis producers, but that has not been confirmed. Despite how new the law, labs and companies in other countries — including Canada, Israel and Chile — have requested to set up fields and labs to study the medicinal properties of Cannabis in Uruguay. This is particularly important because suppliers in the Netherlands can no longer meet this demand. However, Uruguay insists that they want to focus on developing the market in their own country, although this may be possible in the future.

Looking Forward Legalization is still in its infant stages in both Colorado and Washington, so the long-term effects of legalizing on the states’ government and residents remain to be seen. It is generally expected that the aftermath of legalization in these states will have an effect on national policy. If these states collapse, the nationwide legalization effort will be devastated. But if nothing bad happens, it might be even closer than expected. S

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Ec on om ic

By Hippy KK Illustration by Andy Rostar

MAY 2014

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any people took a hard hit when the economy crashed in 2008. Things are getting better, but we’ve still got a long road ahead of us before complete comfort can set back in. If you happen to watch the stock market, that’s a sure sign the economy is increasingly getting stronger and people are investing again. It doesn’t necessarily take buckets of cash to get in on a good thing. Sometimes it’s all about the timing. Big or small, there’s room for all players who want to participate.

A look back at last month Last month in our Stock issue, we ran several articles on stock options: investing with pennies, Hot stock and Taking stock. Taking stock was a relatively short list of some of the available cannabusinesses being traded on the stock market today. Investing with pennies was all about penny stock and how to get involved in the penny market, and Hot stock was our monthly Top 10, which consisted of the hottest Cannabis-related stocks out there. All of these articles are great learning tools for those that might not already know what stock options are out there that would best fit them financially as an investor.

Hard times Stock isn’t the only player in the canna-world that took a hit when the economy crashed. Dispensaries, cultivators, head shops, lawyers, accountants and even connoisseurs felt the pressure. Very few people had the extra funds to buy their medicine, supplies for their gardens, accessories, or for important

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MAY 2014

professional services. More stores than I care to think about closed up shop for good. But that has all changed and cannabusinesses are once again thriving, standing with two feet on the ground and turning a profit. Thank goodness for the change of times.

is involving banks and cannabusinesses, or I should say the lack thereof, business owners are always looking for private investors that would be willing to help their dreams become a reality.

Bouncing back

If it’s the stock market that makes you see dollar signs, rather than an independent business, keep watch over those that peak your interest. Watch their rates daily and whether they fluctuate by more than a few points up or down from day to day. Be sure to check out the history of the company, do your research and don’t sell yourself short. Remember, this is your money being invested and ultimately you’re doing them the favor. The more stock sold, the stronger a company looks. It took me over a year of monitoring a company’s stock before I decided to invest. While researching the company, I looked for certain things such as the state they were incorporated in, where they operated their headquarters out of, did they have multiple locations, did they ever change their name, and if so, I did more research into the reasons why. I felt by the time I made the decision to invest my hard-earned money into this company, I knew more about them than they did themselves! If you would feel more comfortable, go to a broker and ask questions, that’s what they’re there for.

Over the past two to three years, there has been a noticeable increase in new cannabusinesses of all sorts. In my particular area, it’s grow stores. So with that said, that tells me that more people are cultivating Cannabis, which in turn should mean there are either more medical dispensaries opening up shop, or the demand is simply greater than it was just a few years ago. In another area it might be accountants that specialize in cannabusinesses hanging their CPA signs out for those operating out of one of the two recreational states. Whatever the reason in any area, it’s a sure sign people are feeling more comfortable spending their money again. Regardless if it’s investing in a business or spending it at a business, times are getting better for everyone involved and joining in is more stable decision now than it has been in a long time.

Being a private investor Opening up a cannabusiness requires financial backing. Whether it’s cash on hand or outside financial support, a strong business mind is needed for planning and carrying out that plan is necessary for succeeding. Long-term financial planning, such as five to seven years is almost always required when seeking outside financial assistance. Many investors won’t even shake a stick at anything less than five years. So keep that in mind if you intend on being an investor in a cannabusiness and require detailed documentation of their longterm business plan. With the situation as it

MAY 2014

Investing in the stock market

Become a player-conclusion It’s almost never too late to invest in the cannaworld. Whether you have a boatload of cash you want to invest or just a jar of change, there’s sure to be a cannabusiness with your name on it and as long as our current economic climate continues to strengthen, it’ll almost always be profitable for all involved. Hopefully the saying, “we can only go up from here” holds true. S

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By Diana Campos Illustration by Josh Clappe 46

MAY 2014

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his year’s 4-20 holiday has marked little more than a mere season since Colorado became the first American state to legalize the sale of Cannabis for recreational purposes. This is obviously a major milestone for Cannabis aficionados across the nation, the majority of whom only months ago were looking at unreasonable fines and even jail time for an “offense” as minor as a joint, and many for whom that danger still exists. What this means for America is a clear ending to decades of prohibition and the start of building the next Amsterdam right here in the United States.

Holland’s herbal haven Amsterdam has been and, in this writer’s personal opinion, will always be the ideal stoner vacation spot — at least in Europe. Widely known for its lax policy on drugs, this city has since the early ’70s enticed travelers from all over the world to participate in something that was until only recently strictly prohibited by law everywhere else — Cannabis consumption. Sure, there are many other reasons to visit Amsterdam — its historic canals, its quaint Dutch architecture, its countless museums including the more famous Rijksmuseum and the Van Gogh, its eighteenth-century windmills, the breathtaking tulip fields right outside the city, and, of course, the infamous red light district — but it is the city’s tolerance of the herb that not only makes Amsterdam unique, but the mecca for stoners it has become. Now I can’t say that Cannabis is legal in Amsterdam because contrary to popular belief

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it technically is not. Although it is true that the Netherlands is much more lenient than most other countries as far as the open consumption and possession of Cannabis and Cannabis products (hash, edibles, etc.), the country is tied to several international treaties that prevents them from explicitly legalizing the herb. Dutch drug policy splits substances into two lists, one for “hard” drugs and one for “soft” drugs. In 1912 “Opiumwet” or the Opium Law was first introduced in The Hague — the third largest city in the Netherlands after Amsterdam and Rotterdam respectively — in order to regulate drugs in a time when opium popularity was getting out of hand. In 1919, List 1 of the Opium Law was introduced followed by List 2 in 1928. The first list consisted of drugs that were either highly addictive or harmful in nature such as most opiates from morphine to heroin, MDMA, 2C-B, and cocaine. The second list consists of other less addictive drugs and includes Cannabis and hashish. All drugs itemized under both lists are illegal to import or export to or from the country, prepare, treat, process, sell, supply, provide, transport, manufacture, or possess except for medicinal use as issued by a licensed doctor. Over the years drugs were either added, subtracted, or moved from one list to the other. In 1961, the Netherlands took part in the Single Convention on Narcotic Drugs — the first convention to clump in and prohibit Cannabis with other internationally controlled drugs. The convention focused on banning the cultivation, distribution, and especially the

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trafficking of non-synthetic drugs (synthetic drugs are covered in the 1971 Convention of Psychotropic Substances). The purpose of becoming involved in an international drug treaty was to put a halt on drug trafficking by getting multiple countries to cooperate on the issue, thus making it harder for drug smugglers to cross borders. And although illegal, drug possession became deprioritized as a result. The ’60s and ’70s brought with their free love attitude an influx of psychedelic drug use with Cannabis being the most commonly used. These drugs were noted to be decidedly less damaging to society as well as to the people using the drugs than in the case of opiate abuse. So, in 1976 changes were made to the Opium Law in order to differentiate between “hard drugs” (commonly those in List 1) and “soft drugs” (mainly Cannabis and some sedatives). Seeking to separate generally peaceful tokers and occasional day trippers from the dangerous underground of harder drugs, the Dutch government openly yet unofficially announced that it would not look to prosecute Cannabis-related offences as long as they were reasonable. Believing that the use of soft drugs is more of a health problem rather than a criminal issue, the Netherlands decided that Cannabis tolerance with certain limitations would be a practical approach toward combating drug addiction and trafficking.

nfortunately, complete legalization was out of the question as the country is tied to the aforementioned international treaties that prevent this from happening. Even so, due to loopholes and the

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stated arrangement, the 80s and 90s brought with them the opening of coffee shops — cafés that sell Cannabis, hash, edibles, and sometimes coffee as well. Without fear of prosecution as long as certain regulations were followed — no advertisements, no sales to minors, a max transaction of 5 grams per person, and a limit on total stock per store — the coffee shops began to flourish. All shops allow for patrons to enjoy their weed on-site in varying environments: underground dens with sliding doors and neon green lights, homey breakfast restaurants, cafes with espresso machines and internet access, even smoothie bars which are also known as juice joints. As the shops became established, word about them began to spread, bringing in tourists from all around the world. This Cannabis tourism was aided by High Time’s annual Cannabis Cup; held every November and advertised in their magazine, the event is essentially a competition of the coffee shops and their products in which attendees are invited to participate and even help judge. In turn, the economic success of these shops allowed for the creation of smart shops — imagine a head shop that sells magic mushrooms, herbal ecstasy, hash lollipops, and Cannabis seeds right next to the more usual array of bongs and pipes.

Trouble in Paradise But, even with this odd sort of decriminalization and undeniable proof that the Dutch drug policy was working (the Netherlands have some of the lowest crime and drug-related death rates in Europe), the coffee shops faced struggles behind the scenes that threatened the business side of the operation. Since the cultivation of Cannabis remained a

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highly penalized offence, the shops are often forced to get some of their supply through illegal channels which means they sometimes go through a black market of drug dealers and illegitimate growers. Certain amendments have since been implemented to allow for the coffee shops to grow a regulated amount of their own product to sell, but the restrictions make it hard for the shops to stay stocked and keep up with demand.

applicability; licensing; the licensed premises; retail Cannabis stores, cultivation facilities, and manufacturing facilities; transport; warehousing; business records and reporting; labeling; packaging; product safety; signage; advertising; enforcement; discipline; and division, local jurisdiction, and law. This was made possible with the voter-approved “Amendment 64” which was proclaimed in December of 2012.

Recent problems with so-called “drug tourists,” the growth of an underground Cannabis market, and demands from anti-Cannabis crusaders have caused Amsterdam to backtrack in terms of Cannabis legalization. In 2012, the city proposed membership-only regulations on coffee shops that ban all non-Dutch citizens from buying or smoking Cannabis in their stores. The ban was implemented in southern cities like Maastricht, causing huge losses in profits and jobs in the area. In 2013, the mayor of Amsterdam refused to implement the ban in order to prevent even bigger losses. It was noted that turning coffee shops into clubs also led to a big drop in tourists as well as a rise in the number of illegal drug dealers in areas where the sale of Cannabis had suddenly become extremely limited.

With strict regulations and hefty fines and fees, the state’s Department of Revenue’s Permanent Rules Related to the Colorado Retail Marijuana Code leaves very little room for questions or loopholes. Within its pages is an agreement between state and nation that says the federal government will not interfere with “Colorado’s ability to regulate the Retail Marijuana industry in accordance with state law.” This statement — a vital part of what was missing from California’s fight for legalization in the past two decades — was included in order to prevent the DEA and other federal agencies from dismissing the state’s newly passed laws. This lack of fear of being randomly raided and arrested provides a realistic sense of stability for Colorado’s ultrasuccessful cannabusinesses. The rest of the packet is an example of the by-the-books route towards Cannabis legalization an American state has chosen to take.

Retail Cannabis in Colorado As the Dutch push against this reversal of Cannabis legislation, the United States is making huge breakthroughs with it. On Jan. 1st of 2014, retail Cannabis stores opened for the first time ever in U.S. history. Whereas the Netherlands has yet to solve the issue of Cannabis cultivation and manufacturing, Colorado’s government has over 130 pages of rules and regulations covering general

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Listed below are highlights of only some of the rules that owners and employees of retail Cannabis establishments are expected to follow:

Opening a Cannabusiness • A ll applicants must submit to a criminal history background check and pay a $5000 MAY 2014 49

application fee. • New licenses range from $2750 to $14,000 depending on the type and number of establishments. These fees must also be paid once a year, every year thereafter for renewal of the licenses. • A ll employees must be at least 21 years of age and residents of Colorado. The owner themselves must have lived in the state for a minimum of 2 years before applying.

Everyday rules • Both written and video logs must be kept on all sales transactions. • A ny limited access areas (a licensed area where retail Cannabis is “grown, cultivated, stored, weighed, packaged, sold, or processed for sale”) require a log of all visitor activity and can be visited at any time by investigators and law enforcement officials. • Security alarm and video surveillance systems are required to be placed in specified locations around the premises. • Marijuana and Cannabis products cannot be sold or transported before 8:00am or after 12:00am. • A ll establishments must use the MITS software program to track inventory which in turn requires all users to acquire an authorized tag. • Retail Cannabis stores can only sell up to one ounce to residents (with proof of identification) and a quarter ounce to nonresidents. The stores may not sell other consumable products that are not Cannabis or Cannabis-infused. This means no tobacco, alcohol, food, or drink sales.

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• Under no circumstances is Cannabis ingestion or consumption ever permitted on a licensed premises. • Marijuana must be labeled with the license number of the facility where it was grown, its harvest batch number, its weight, a list of any nonorganic products used in the growing process, test results if any, and warnings if not. • No more than 100 milligrams of THC per edible. • Concentrates such as oils, hash, and wax must be labeled with a list of all solvents and chemicals used to make the finished product. • A ll products must be weighed and tracked, including waste materials, and even the weighing scales must be “certified in accordance with measurement standards”. • It is illegal to advertise to out-of-staters, anywhere outdoors where the general public can see, or to an audience with 30 percent or more minors.

Fines and penalties • A licensee can face license suspension or revocation as well as up to $100,000 in fines for violations that directly affect public safety. These can include but are not limited to sales to minors, buying Cannabis from unauthorized sources, and intentional mistake made in inventory. • Penalties for violations such as incorrect packaging, bookkeeping errors, or failure to maintain security requirements can range from a written warning to a maximum of $50,000 in fines. • As little as a verbal warning to as much as

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$10,000 in fines are given for minor offenses such as improper placement of badges. With its lengthy application process, highly expensive fees and fines, and mandatory requirements regarding every single aspect from seed to sale, the state of Colorado has greatly limited the number of retail Cannabis facilities currently in operation. On the historical first day in legal retail Cannabis sales, only about 30 stores have set up shop throughout the entire state; nevertheless, the combined sales exceeded projected sales by millions in the first month alone. The state is thus currently experiencing a sort of “Green Rush” as applications for licenses continue to swarm in, but for now the strict code keeps Colorado’s Cannabis industry under tight control.

onsumers themselves must adhere to their own set of rules too, of course. Residents are permitted to purchase and carry up to an ounce of Cannabis. They are also allowed to grow a maximum of six Cannabis plants in their own home as long as only up to three of those plants are in flowering at one time, the garden is kept locked, and none of it is sold. Consumers also must bear the heavy but

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mandatory burden of paying a 25 percent tax in addition to the standard state sales tax for the product. On top of that, local jurisdictions are allowed to add additional taxes if they so wish. Users are strictly forbidden from traveling out of state with Cannabis or Cannabis products, from driving while intoxicated, and — rather unfortunately — from smoking anywhere in public. In fact, the product can only be smoked in the user’s own home or on private property with the owner’s permission.

Building Colorado-dam These strict laws permit Americans to do something the Dutch — even in their extremely liberal country — legally cannot, and that is to cultivate and ultimately manufacture Cannabis. The decision to legalize the industry, even with tons of red tape, was met with much excitement but little surprise to those of us that understand the United States is a businessoriented country with a desperate need for the other type of green it can bring in — cash. The newly legalized commodity may cost a pretty penny under so much governmental control but the hard-to-get licenses serve the purpose of halting organized dealers and unsuitable product from snaking their way into the wholesale side of the business. With every

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miniscule aspect of the industry thoroughly covered by bills and codes, what could possibly be missing from Colorado’s own stoner paradise? The simplest answer is ambiance. Ask any Cannabis aficionado who has traveled to Amsterdam and they will tell you that they have seen Cannabis plants growing on balconies as though they were common houseplants (outdoor growing is banned in Colorado); that they have gone into a shop, ordered a specific strain off of a menu, and then sat down and enjoyed a bowl with their breakfast or with a pint of foamy beer in an establishment where everyone else was doing the same. It is an atmosphere with a genuine “live and let live” spirit that is rare to find anywhere else, all while enduring contradicting laws.

n Colorado as well as nationwide, the Clean Indoor Air Act prohibits people from smoking indoors with a few exceptions. In order for Colorado to make their own version of the “coffee shop,” several things have to happen. Ideally, the code in place must drop the ban on smoking inside of a retail Cannabis store so that customers can enjoy the product they bought at the same place they bought it from — much like a bar or café. To produce a relaxed coffee-shop-type atmosphere, several other rules would have to be omitted as well; in order to sell snacks and beverages, they would have to be removed from the list of consumable items prohibited from being sold in the stores. Granted, retail Cannabis store owners would have to apply and pay substantial fines for any physical modifications to the store, such as new checkout points and seating for clientele.

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Another plausible route, but one that may take a few years and more votes to implement, would be to permit for a separate retail establishment designated only to smoking Cannabis or consuming Cannabis-infused products on-site. These smoking rooms would undoubtedly come with their own set of rules in order to keep them safe and controlled and they would provide a tourist attraction all of their own. Speaking of tourism, the state of Colorado should consider capitalizing on their newfound popularity among a growing generation that is willing to partake in a substance that is considerably less harmful than alcohol. If you pick up a travel guide for Amsterdam, you will find at least one page that both lists and reviews coffee shops as though they were restaurants. At this time, Colorado is still in the darker side of the gray area that markets Cannabis in general –— especially to tourists. Perhaps in the near future, Colorado will also lead the way in a more relaxed form of Cannabis legislation — one that will exceed that of Amsterdam’s currently conflicted drug policy. It seems that a true laxness toward Cannabis and the Cannabis industry as a whole would only be possible with nationwide legalization — an end to prohibition on a federal level. Then and only then will America have succeeded in creating our very own Amsterdam right here at home. Colorado may be the first state to cross the line of legalization, but it is certainly not the last nor will it be the only state to have done so for much longer. Join us next month as we turn our focus on Washington in part 2 of Building Amsterdam. S

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E OU L A C S T OR DO

LA RG E

CULTIVATION

By Kandy Krush Illustration by Josh Clappe

In the past

, most growers did not have the luxury of allowing their plants to flourish outdoors in their natural habitat. There is considerable uncertainty regarding yields, costs of production, harvesting and processing equipment and product characteristics. In the past, “Green Harvest” has been known to wipe out an entire grow site. This is where they bring in big helicopters and land on your property, chop down your plants and burn them before you can stop them. I have witnessed this in Hawaii and it is not a pretty sight. With more and more states jumping on the Cannabis legalization bandwagon, more and more companies are looking toward the possibility of growing outdoors. After all, the natural sunlight provides an easy and efficient growing option. So what is the best climate for a large commercial outdoor production? The broad adaptability of the Cannabis plant to different climates makes it a viable crop on virtually all the nation’s cropland. In practice, however, it has been grown in states where summer rains or abundant irrigation is available: Kentucky, Wisconsin, California, Oregon, Hawaii, North Dakota, South Dakota, Minnesota, Indiana, Illinois, Ohio, Michigan, Kansas, and Iowa. The Cannabis plant thrives outdoors with adequate irrigation and can yield reliably high production. However, surprisingly irrigation needs are less than that of many of the competing crops. According to one of my local growing experts, Industrial Hemp requires 10 to 14 inches of rainfall or irrigation during the first six weeks of growth, and that much again throughout the growing season.

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Outdoor grows typically need to be planted in April or May, with the harvest of the crop in an average of 90 days. If grown from seed the crop takes approximately 30 to 45 additional days to mature. This relatively short time between seeding and harvest opens up a large number of possibilities for complementary crop rotation, especially in an area like California, where it could be planted as early as February. Hawaiian Cannabis advocates boast of a local climate capable of producing “at least” three crops per year. However, a large commercial outdoor grow does have its drawbacks. Environmental conditions such as moisture, pest management and the soil’s PH are all important factors. Initial start-up production investments would include land preparation and purchase of seed and the installation of an irrigation system. Nature also offers a variety of predatory factors:

Birds: An important predator to be aware of is the bird population. They can take a heavy toll on seed production. Cannabis seeds provide extremely nutritious food for both wild birds and domestic fowl. Even grasshoppers can wreak havoc on your outdoor grow.

Disease: Diseases such as mold and insects such as spider mites can be potentially hazardous to your outdoor grow. No herbicides or pesticides should be used after the fourth week of flowering if grown for medical Cannabis production. If it is used, the grower opens themselves up to developing bud mold, and mold can be a very real issue. Canada indicates Botrytis gray mold, Sclerotinia white mold, and European corn borer, have been observed in some of their hemp production.

Climate: Cannabis grows best when daily

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temperatures are between sixty to eighty degrees, but plants will endure colder and warmer conditions. Kentucky was once the leading hemp producer in the United States. Now with the legalization of the production of hemp, Kentucky seems to have some of the best climate features for large commercial outdoor production.

Water: Cannabis plants require abundant moisture throughout the growing season, particularly while young plants are rooting during the first six weeks of growth. After they are well rooted, plants can endure drier conditions, however, severe drought hastens maturity and produces dwarfed plants. Cannabis grows well in soils with high waterholding capacity with good soil drainage.

Soil: Although Cannabis can be grown in a variety of soil types, it does best in loose, well-drained loam soils with high fertility and abundant organic matter. It will not grow well in acidic sandy soils, heavy clay, or gravelly soils that dry out quickly. Fertile clay loam or silt loam soils, neutral or slightly alkaline, are best. In Texas, good crops of industrial hemp can be produced on rich dark prairie soil, but on upland soils, subject to drought, the crop has proved a failure. Industrial hemp grows best on well-drained soils with high fertility and is rich in organic matter. Yields and quality suffer when plants grow in poorly drained clay soils. Despite the uncertainties associated with a large commercial outdoor production, Cannabis is an environmentally friendly, sustainable product that many companies are willing to take the risk of growing. Those who have entered this industry seem to be very highly motivated, resourceful, and industrious.

Companies on the move Arizona: Zoned Properties, Inc. (OTC:

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ZDPY) http://www.zonedproperties.com, a lessor of land, facilities and equipment to the medical marijuana industry has announced that they have closed on a multi-tenant light industrial park in Tempe, Arizona. The $4.6 million acquisition represents the sixth largest commercial transaction this year in the state of Arizona, according to Loopnet.com.

Colorado: Colorado presents the most viable opportunity with both the medicinal and recreational markets in full swing. MediSwipe, Inc. (www.MediSwipe.com) (OTCQB: MWIP), the leader in Compassionate Care Technology Solutions and products for the medicinal marijuana industry, seems to think that Pueblo County, Colorado is the best place to grow, and has recently purchased 80 acres zoned for agricultural use. Once complete, the 80acre greenhouse and managed facility will be the largest managed facility of its kind within the state. Cannabis Global Group intends to develop a 100,000-square-foot, state-of-the-art growing and processing facility on the property. Talisman Holdings Inc. (OTC: TMHO), a highly innovative holding company focused on microand small-cap companies, recently announced that its Cannabis Global Group division has agreed to lease a 35-acre property in Routt County, Colorado for future Cannabis cultivation following the state’s legalization of recreational marijuana. With the agreement in place, the company has begun the process of establishing its presence in the legal Cannabis industry.

Conclusion As you consider the best state for your large outdoor grow site, Arizona, Washington and Colorado are the obvious choices right now given their current legalization status, but other states may soon be just as inviting with climates and soils perfect for mass production. S

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CannaBusiness: Fact or Fiction?

By Kandy Krush

Stock prices were off the chart in early 2014 as the industry is all abuzz with the option to legalize Cannabis. Day traders are ecstatic as stock prices soar — the money is there to be made. But is it all just that, a buzz, a peek into the future, or are the numbers over-inflated like our last housing boom? Cannabis and hemp mean money, and we all know money talks. This industry is creating jobs and business development that is bringing wealth to many. This April marked the first 420 since

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recreational Cannabis has been legal in Colorado and Washington. There are countless events revolving around the holiday and extending throughout the year. Many new entries were announced this month at the High Times U.S. Cannabis Cup held at the Denver Mart, Denver, Colo., on April 19 to 20. People from all over the world came to the city to celebrate the freedom of Cannabis. This two-day public event was attended by more than 40,000 adults and 700 vendors. The Mile High City was packed with companies making announcements of new products and

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innovations in the Cannabis industry. Not to be outdone by Denver, Seattle had its own Hempfest in April and is having another one this Aug. 15 – 17th, 2014. The event spans three Seattle waterfront parks: Centennial Park, formerly Elliott Bay Park (North Entrance), Myrtle Edwards Park, and Olympic Sculpture Park (South Entrance). According to their website, Seattle Hempfest stands as a platform to educate the public on the myriad of potential benefits offered by the Cannabis plant, including medicinal, industrial, agricultural, economic, environmental, and other benefits or applications. On April 14, Terra Tech Corp. (OTCQB: TRTC) released a corporate update and tax income guidance of $7,000,000 for the entire year 2014. Sales through Edible Garden and its line of locally grown hydroponic produce, which is spread throughout the Northeast, have been strong for Terra Tech since the conclusion of the merger in April 2013. Management said it expects to bring in close to $7 million in revenue for the full year 2014. This week on April 16, Vapor Group, Inc., formerly AvWorks Aviation Corp., (OTCQB: SPLI) stock volume soared, with 47,892,751 changing hands, almost three times its threemonth average volume of 16,622,807 parts. Limitless Venture Group Inc.’s (OTCPINK: LVGI) announced April 16 that the company and a third- party debt holder, Beaufort Capital Partners, reached an amicable settlement regarding an outstanding note which had multiple terms attached. The parties agreed to a two tranche fixed conversion to settle in its entirety a $163,391.00 note balance, for a total

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of 273,257,143 shares. On April 16, LVGI’s share price closed at 0.003 cents, down 0.0003 cents from its closing price of 0.0033 cents the previous day, on volume of 122,970,987 shares. Greengro Technologies Inc. (OTCPINK: GRNH), a company that provides construction and maintenance services for medical and recreational marijuana growers, announced the official grand opening of its Anaheim, Calif. store will be May 15th. The Vertical Hydrogarden store soft opened this month with some 30,000 product offerings on the shelves around the store. The Anaheim store is the second location with continued company expansion plans to hit 50 stores openings. Kannaway, LLC, the first Cannabis network marketing company that focuses on hemp botanical products, is hosting its inaugural convention during Colorado’s “420 weekend,” April 18th and 19th in Denver, Colo. Kannaway is unveiling Cannabidiol, rich hemp oil products. Kannaway currently has over 60,000 marketing professionals in its network and more than 9,500 Brand Ambassadors. The company estimates it will exceed 10,000 Brand Ambassadors by the end of the convention. They are trusting that through relationship marketing they can market their CBD-rich hemp oil products back to mainstream America. It’s a good day to be an American and soon our freedom will include the use of Cannabis as we see fit. Gone will be the days of prohibition and freedom will once again reign over our use of Cannabis. Smart investors are jumping on the proverbial bandwagon. It’s a new day and there is money to be made. S

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What Does Legalization Look Like in Other Countries?

By Kandy Krush Illustration by Emily Cain

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The United States is all abuzz with news about the legalization of Cannabis, whether it is for medical or recreational purposes, the topic is on the ballots in many states. The winds of change are blowing across the cosmos and it appears to be slowly but surely turning away from the misguided crusades against Cannabis, and now countries are counting toward a future in which it is considered a beneficial crop to many people. What does legalization look like in other countries? The legality of Cannabis for general or recreational use varies from country to country. Possession of Cannabis is illegal in most places, and has been since the start of the widespread Cannabis prohibition in the late 1930s and 1940s. Nevertheless, many governments have decriminalized the possession of small amounts of Cannabis, not solely in North America, but also in South America, the Netherlands and Europe. By 2018, retail sales of Cannabis in the United States are expected to be between $7.4 and $8.2 billion, representing a striking increase from the anticipated retail sales this year of $2.2 to $2.6 billion, according to the Marijuana Business Factbook. Although it’s not entirely known how much money Cannabis-related businesses earn in states where the drug is legal, since only a few are required to report their financial information to the public, the group said it developed its forecast for the 2018 sales by conducting exclusive surveys with consumers, cannabusiness executives, statistics and political analyses published in the media. This November 2014, the Marijuana Policy Project expects both Alaska and Oregon to legalize recreational Cannabis use, and in 2016, it expects Arizona, California, Nevada, Massachusetts and Maine to attempt to

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legalize recreational Cannabis. Hawaii, Maryland, New Hampshire, Rhode Island and Vermont are expected to follow suit in 2017. While the majority of the American public seems to support the legalization of Cannabis, at least for medical purposes, some states such as Minnesota don’t seem capable of agreeing on any legislation to legalize Cannabis use in any form. Other states like Utah, meanwhile, have passed legislation that only legitimizes the use of Cannabis oil for two years, but does not allow Cannabis to be farmed in the country. While many European nations have long had more relaxed attitudes toward Cannabis than the United States, it remains illegal throughout the continent. Among Europe’s current leaders, only the president of Iceland, Olafur Ragnar Grimsson, has come out in favor of full legalization. German law forbids the public sale of narcotics, but exceptions are possible “for scientific or other functions in the public interest.” The neighboring Netherlands already has hundreds of so-called coffee shops where the sale of limited amounts of Cannabis is permitted.

Meanwhile in South America… President Mujica of Uruguay showed that politicians can be truly courageous with drug policy when, in December of 2013, he announced that Uruguay would become the first country to decriminalize Cannabis. Uruguay is showing the rest of the world that it really is easy to take on the subject of legal Cannabis production and supply; all we really need are politicians capable of showing a humble amount of bravery. In addition to allowing citizens to grow, buy and sell

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Cannabis, the regime will likewise set off on its mission to develop its own studies of Cannabis, which will be harvested, taxed and sold in neighborhood pharmacies. Social development minister Daniel Olesker told a medical Cannabis symposium in Montevideo that medicinal Cannabis will be incorporated into the country’s public health system, alongside acupuncture and homeopathic remedies. Prisoners in the jails of Uruguay will be able to use Cannabis if a doctor says it will benefit their health. Uruguay’s drug czar Julio Calzada told The Associated Press that any inmates with doctors’ orders will be prescribed Cannabis to improve their physical or mental health. Calzada says his agency needs two more weeks to complete the regulations for the government’s legal Cannabis market, which he now expects to come out between April 20 and 25. He says the actual rollout will not be until the end of the year.

substances are exclusively available for scientific and medical purposes,” Sezibera told the Parliament. The bill complies with the United Nations conventions on drugs and responds to the UN’s call for every country to have laws against illegal drugs and to control dangerous medications, said Sezibera. At the same time, it achieves the Health Ministry’s mandate to ensure that citizens receive enough access to medicinal drugs, he stated. “Medical use of such substances helps in relieving the pain and problems related to psychic troubles,” said Sezibera. “The medicine will thus be available and correctly utilized.” Members of Parliament endorsed the bill without objection, New Times reported.

Morocco According to the UN, Morocco is responsible for 42 percent of the world supply of Cannabis. Cannabis farms are primarily found in the north of the state in the Rif Mountains. The area is also one of the nation’s poorest where GDP per capita is 50 percent of the national norm. Illegal Cannabis cultivation annually reaches 10 percent of Morocco’s economy with sales estimated at $10 billion, according to the Moroccan Network for the Industrial and Medicinal Use of Cannabis. Legalizing cultivation could boost exports of Cannabis-based products, such as medicines and textiles. Copyright © Free Vector Maps.com

Even conservative Chile — a nation that did not legalize divorce until 2004 — has debated legislation to legalize Cannabis.

Rwanda The Rwandan Ministry of Health has sent Parliament a bill that would decriminalize the use of Cannabis and other drugs for medical purposes, the Rwandan newspaper, New Times reported. Health Minister Dr. Richard Sezibera, who submitted the draft law governing drugs, psychotropic substances, and precursors, said the bill would protect the population. Copyright © Free Vector Maps.com

“The objective of this bill is to contribute to the protection of the population while ensuring that drugs and psychotropic

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The Moroccan parliament has held a hearing into the industrial and medical benefits of Cannabis usage. The treatments, initiated by one of Morocco’s main political parties are the beginning steps to usher in a draft law next year aimed at legalizing the plant. The hearing, organized by the Party for Authenticity and Modernity (PAM), analyzed

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the financial development of Cannabis growth. PAM members argue that legalizing farming would help small growers, as an estimated one million Moroccans depend on cultivation. “We are not seeking to legalize the production of drugs, but to search for possible medical and industrial uses of this plant and create an alternative economy in the region,” said Milouda Hazib, head of the party’s parliamentary delegation. The debate included testimony on the Swiss proficiencies in using Cannabis for medical and industrial purposes. Setting up control and law enforcement mechanisms also occupied the debate as PAM seeks to allow farmers to sell their yields to the government rather than to drug traffickers.

would allow for the legal sale of Cannabis under certain restrictions in the country’s capital, Mexico City, according to The Associated Press. The law would create a health program to monitor consumption and sale of Cannabis, the outlet notes. Selling Cannabis would not be allowed near schools. The bill would fully legalize the possession of 5 grams or less. This bill in Mexico could lead to positive change in the country’s drug war. Since 2007, around 80,000 people have lost their lives as a consequence of the fighting between drug cartels and Mexico’s armed forces, according to Reuters.

Canada Canada is transitioning from small-scale medical Cannabis production to a $1.3 billion market composed of large-scale, government-certified indoor farms. Abattis Bioceuticals Corp. (OTCBB: ATTBF) announced a share exchange that resulted in a 25 percent stake in Experion Biotechnology Inc., which is in the former stages of applying to become a Licensed Producer under Canada’s MMPR. Copyright © Free Vector Maps.com

“Security policies aren’t solving the problem because it’s an economic and social issue so the PAM is trying to find a credible alternative,” PAM’s Mehdi Bensaid said. “We think this crop can become an important economic resource for Morocco and the citizens of this region.”

Mexico New data is showing that Mexican drug cartels are suffering from lower prices brought about by U.S. legalization efforts. Mexican farmers have slowed Cannabis production for the first time in generations after the price per pound plummeted thanks to increasing legalization in the United States. Mexico City is considering both decriminalization of the drug and legalization of growing clubs. Copyright © Free Vector Maps.com

A new bill introduced in February of this year

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Medican Enterprises Inc. (OTCBB: MDCN) acquired 50% of International Herbs Medical Marijuana Ltd., owner of Zenabis and the late - stage applicant to become a Licensed Producer under Canada’s MMPR.

Switzerland In Switzerland, an attempt to decriminalize possession and consumption of Cannabis failed narrowly in Parliament in 2004. However, since September of 2012, the possession of less than 10 grams of Cannabis is no longer a criminal infringement, but is still Copyright © Free Vector Maps.com

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punished by a 100 Swiss francs flat fee. Even so, Lawmakers in this country have relaxed the rules and ordinarily only the minimum punishment is imposed for possession and personal usage, even for larger amounts. According to The Independent, recent measures expect to save money by cutting back on the 30,000 Cannabis-related cases courts have had to handle each year. As of January 1, 2012, the cantons Vaud, Neuchatel, Geneva and Fribourg have allowed the farming and cultivation of up to four Cannabis plants per person, in an effort to curtail illegal street trafficking, according to a message to Parliament accompanying the government’s decriminalization proposal.

Spain Selling Cannabis is a criminal offense punishable by law at any quantity. Buying, possession and consumption in a public place constitutes a misdemeanor and is penalized with a fine and confiscation. However, growing the plant on private property for personal use, and consumption by adults in a private space is legal in Spain. Copyright © Free Vector Maps.com

India Used during observance of certain Hindu rituals. Government-owned shops in holy cities like Varanasi sell Cannabis in the form of bhang. Despite the high prevalent usage, their Cannabis law is rarely enforced and treated as a low priority across India. Copyright © Free Vector Maps.com

Czech Republic Possession of up to fifteen grams for personal use or cultivation

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of up to five plants is merely a misdemeanor in the Czech Republic, making it a popular destination for smokers. Medical use of Cannabis by prescription has been legal and regulated since April 2013.

Conclusion These are historic times for the Cannabis connoisseurs as attitudes and laws towards Cannabis continue to shift. As legalization advocates push to make ending Cannabis prohibition a political priority, there is a chance that in the near future we will wholly have the freedom to use this God-given plant as we see fit. S All maps by FreeVectorMaps.com. Used with permission.

http://kdwn.com/2014/04/09/uruguay-togive-medicinal-marijuana-to-prisoners/

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http://www.vancouversun.com/news/Enter+wor ld+Muslim+women/9429434/story.html http://www.mintpressnews.com/us-marijuanasales-expected-to-reach-8b-by-2018/188694/ http://www.policymic.com/articles/79369/themarijuana-legalization-tidal-wave-is-comingsee-this-map http://www.uk420.com/boards/index. php?showtopic=340592 http://www.typesofweed.com/cannabis/india http://www.stockwatch.com/News/ Item.aspx?bid=U-by414292-U:ATTBF20140414&symbol=ATTBF&region=U http://forum.grasscity.com/internationalmarijuana-news/944861-swiss-cannabissmokers-will-allowed-grow-four-marijuanaplants-each.html/

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the Green Table Interview

Paul Lembeck, CEO, Sativa Labs & Global Heritage Seed Co.

By Hippy KK For well over a year, I had the privilege to work with Paul Lembeck, CEO of Sativa Labs & Global Heritage Seed Co. here at Sativa Magazine where he wrote about the science of Cannabis breeding and cultivation under the pseudonym Paul Josephs. When advice was needed and Dirti wasn’t available, it was Paul, JD and I would turn to. His vast knowledge and experience with the Cannabis plant brought much to the table for our readers through all of his writings. Residing in Colorado, recreational legalization and the Hemp farm bill have opened new doors for Mr. Lembeck and I wish him nothing but success in his new adventures as he pursues his interest in hemp research and development.

Sativa Labs Q: Where is your lab located?

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A: Longmont, Colorado Q: Do you test both hemp and Cannabis? A: I am officially Research and Development. That is company Global Heritage Seed Co; a subsidiary or parallel company to that is Sativa Labs, so the main focus is on hemp. I’m not licensed to do marijuana testing for the recreational or the medical markets in Colorado. I haven’t paid those fees, I’m not licensed to do that, and I don’t do that. But if somebody wants to know what their legally grown private marijuana is going to test out at, I can do that for them. If it’s for commercial marijuana, I don’t do that. But I do work with people that are doing breeding programs for their own legal purposes because it’s not for recreational or direct sale, then

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we screen hundreds of seedlings and look for Cannabinoid ratios that work for them. The terpene testing is something that I’m very interested in, it’s very complex and just really intriguing. I think it has a lot of potential from the medical aspect of marijuana, and I think terpenes are going to play a big role in that and that’s something I’m personally intrigued by. Q: Type of equipment used? A: Gas Chromatograph (GC) Q: Is your lab portable or is it fixed? A: It is portable. It has a shipping container that I can put it in there to travel. I take the accuracy of my tests super, super serious and it takes my machine a day or two to settle down after a move like that. Q: How much of a sample is required for accurate testing? A: 1/10 of a gram Q: Cost of test? A: To run a sample, it costs $45.00. Q: What exactly do you test for? A: CBD, CBC, CBG, THC, CBN, CBDV and THCV.

Consulting services Q: What type of consulting services do you provide? A: A lot of people are new to agriculture and horticulture so I can give them the basics on what plants need in general. Or if they are a farmer but they need to know more about Cannabis sativa, I can definitely help them with that. For instance, it does not like really dense clay, it doesn’t like to have soggy roots, and there are things we can look at as far as

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fertilizer and crop rotation, pests that they can get. I know a lot about growing and I know a lot about Cannabis so it’s a good fit. They can ask me anything and if I don’t know the answer, I’ll find it. I won’t make it up. Q: Colorado is the first state to pass a hemp farm bill, do you see other states passing such a bill soon? A: Oh yeah, definitely, Kentucky. They have Mitch McConnell, and I believe Wisconsin will be second. Q: 21 applicants were recently approved to grow hemp in Colorado. Of those 21, do you know how many were for Industrial hemp and how many were for R & D? A: I don’t know how many of those are R & D and how many are commercial. I know last week they had a reading of a ‘clean-up’ of the rules where they fixed some things. For example, you couldn’t do R & D indoors but you could do commercial indoors. The number of acres was capped at 10 per plot and they’ve upped that. I know that May 1st was supposed to be the deadline, but now it’s not. Q: I know that you’ve submitted a business license application to your city to grow hemp for research and development purposes. Have you received a response yet? A: I haven’t heard back yet from city about my business application, but I expect it to go all the way, in fact I know it’ll go all the way to the city attorney’s office before I hear back from them. I know it’s the first Industrial Hemp business application submitted to Longmont. Q: Of the 21 approved applications to grow hemp, when can the licensed farmers begin planting their hemp fields?

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A: Here, May 15th is corn planting day, so it’s right about the same time for hemp. Q: Hemp seeds are fairly hard to come by here in the states. Where will the seeds come from and how will you get them? A: The hemp stork. The state is not asking point blank questions this year about where you got your seed from but no one legally has brought in hemp seed through the appropriate channels. The seed is a big deal. Part of the rules for hemp talked about a heritage section of heritage seed which would be internally developed in Colorado so they are protecting us that way a little bit. Q: Do you think the issue with seeds is the hardest part to overcome? A: Right now it is. It is definitely a Catch 22; no one wants to build a processing plant if nobody’s going to grow. So the first hurdle is, you need seed to grow. We don’t have a program in place to protect, say, a Canadian strain that has been certified as being low in THC and has amazing qualities and the protein levels are off the charts. They don’t really have any protection if they send that seed down here that people aren’t going to alter their genetics. So there’s some stuff that needs to be put into place such as plant variety protection to keep it from being too much of a Wild West. Q: I know you attend as many meetings and hemp events as possible. Have you gotten to know a lot of the applicants? A: I know most of the players that have been around for awhile and are interested in this. But I don’t know many of the people in Eastern Colorado that have been looking at getting into this and that was a real eye-opener for

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me. Adams County is an agricultural area East of I-25, and they brought in some big folks from Canada to talk about what they do and it was a real eye-opener. It was very factual; this is what you do, this is the fertilizer you use. They brought 14 – 20 years of their experience doing this on a full-on industrial scale. It was just really cool to see that — how it’s real agriculture and more of the people I know is are into the niches, like what kind of specialty things you can do with the plant. It’s a complete different focus. I don’t know personally probably the three biggest potential players because they’re huge in their community for wheat or winter wheat or whatever they’re doing right now.

Global Heritage Seed Co. I am a registered farmer seed labeler in Colorado so I can breed my own Heirloom Tomatoes, clean and label those myself. Anything I grow myself that produces seed, I can label correctly, do germination tests and sell them. So right now, hemp varieties are what I’m focusing on. Right now, Global Heritage Seed Co. is about trying to locate and import seeds that are going to make hemp work out here right now. Vision: “Sativa Labs is dedicated to furthering the understanding of plant chemistry by conducting ongoing research into the different strains used for seed, fiber and essential oil production, and the effects of nutrients and environment on the quality and quantity of those products. We perform research to further the understanding of the role terpenoids play in plant phytochemisty, and their inheritance patterns and response to environmental changes.” – http://www.sativa-labs.com/home.html

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MEDICAL VS. RECREATIONAL By Hippy KK Illustration by Emily Cain

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hen the clock struck midnight on Wednesday, Jan. 1, 2014, the rules changed for Cannabis consumers who reside in Colorado and Washington. Even outof-state residents visiting Colorado can partake, only in a lesser fashion. Has recreational legalization had an effect on the medical side of things in these two states? Although there is still much buzz going around in Washington regarding what will happen to medical dispensaries, there doesn’t seem to any debate in Colorado. They’re here to stay!

If you build it, they will come And indeed they did! Although Colorado has about 160 state-licensed recreational stores, when their new law went into effect, only 26 recreational retail stores opened that first day and 11 others would soon follow. The first reports in were astronomical. Larger retail shops reported selling anywhere from 50 – 60 pounds of Cannabis in the first week and smaller shops reported selling 20 – 30 pounds. It’s no wonder so many consumers flocked to Colorado to partake in this milestone event, willing to stand in line for hours to legally purchase Cannabis.

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Notice I didn’t say ‘just to stand in line.’ There’s no ‘just’ about it, everyone involved in the Cannabis community wants to be able to say they bought Cannabis legally, myself included and I’m a non-consumer! But no, unfortunately I haven’t made the trip yet. Under state law, Colorado residents can legally buy up to one ounce of Cannabis per transaction. Tourists can purchase up to onequarter of an ounce. Even though prices were increased by the state’s 25 percent tax on retail purchases, including a 15 percent excise tax and a 10 percent sales tax, there’s no doubt, we all saw it on our social media sites, people complained about the high cost of recreational Cannabis, but did anyone refuse to pay the price? It’s doubtful.

The best of both worlds Colorado has more than 500 medical dispensaries, all of which require medical clearance before patients can purchase Cannabis. For the sake of argument, let’s round that number of medical dispensaries to an even 500, only 160 of those medical dispensary owners applied for a state retail license. For

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PRE-RECREATIONAL QUARTER

MEDICAL CANNABIS SALES

COLLECTED SALES TAX

First Quarter July 1, 2012–Sept. 30, 2012

$74,526,945

$2,051,744

Second Quarter Oct. 1, 2013–Dec. 31, 2013

$73,393,150

$2,043,324

Third Quarter Jan. 1, 2013–March 31, 2013

$77,077,184

$2,132,106

Fourth Quarter April 1, 2013–June 30, 2013

$94,317,220

$2,615,492

$328,646,992

$9,112,237

2013 Fiscal Year Totals

those that were approved and wanted the best of both worlds; medical and recreational, would require them to make some specific changes. Medical dispensary owners knew that if they turned their facility into a recreational retail shop, they would be forced to turn away patients that aren’t at least 21 years of age. If they stayed only on the medical side of things, they knew they would be missing out on mucho dinero. But if they made separate entrances and kept separate inventories for patients under the age of 21 and adult recreational users, they could have the best of both worlds.

It’s a numbers game Colorado’s fiscal year runs from July 1 – June 30. In their last fiscal year reports, Colorado reported more than $94 million dollars in medical Cannabis sales that generated the state more than $9 million dollars in state sales tax. During the first half of this fiscal year,

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sales show a significant increase in medical Cannabis, which in turn has generated an ample increase of more than $1.9 million in sales tax collected for the first six months of this fiscal year. Could this increase in medical Cannabis sales in the first six months of the fiscal year be because the residents knew that with the upcoming new year, things might change as far as the medical consumers had come to know it, so they rushed out, stockpiled and stashed it away just in case? Sure, there might have been some worries that medical Cannabis might possibly become the outcast with recreational use being a stone’s throw away. But that has ultimately been proven not to be the case.

The proof is in the pudding The first 31 days of sales that involved both recreational and medical Cannabis, proves to those that might have doubted the stability of the

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POST-RECREATIONAL QUARTER

MEDICAL CANNABIS SALES

COLLECTED SALES TAX

First Quarter July 1, 2013–Sept. 30, 2013

$109,182,002

$3,049,637

Second Quarter Oct. 1, 2013–Dec. 31, 2013

$105,543,590

$2,948,817

First Six Months of Fiscal Year 2014 Totals

$214,825,592

$5,998,454

medical Cannabis industry when recreational use went into effect can let their minds rest easy. The tax total reported by the Colorado Department of Revenue indicates $14.02 million worth of recreational Cannabis was sold and the state collected about $2.01 million in taxes. These taxes came from 12.9 percent sales tax and 15 percent excise taxes. Including licensing fees and taxes from Colorado’s pre-existing medical Cannabis industry, the state collected about $3.5 million in total the month of January alone. Approximately $1.49 million of that total was generated by medical Cannabis sales. The average month in the 2012 – 2013 fiscal year generated roughly $759 thousand in sales tax. January’s sales nearly doubled that, and they were competing with recreational sales.

Conclusion There’s no doubt that many eyes are set on Colorado as they set precedence for recreational

legalization. It can only be hoped that many others will follow suite. If anyone had doubts about the success of the medical market after recreational went into effect, fear no more. From the looks of things, Colorado’s medical dispensaries are here to stay. For almost 13 years now, Colorado has been providing safe access for patients with medical needs. It would be ridiculous for more reasons than one to do away with medical dispensaries — especially with the recently reported numbers. The grass really is greener on the other side when you profit from both worlds. S

Colorado Department of Revenue: http://www.colorado.gov/cs/Satellite/ Revenue-Main/XRM/1251633259746

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Whit Baylis

Facebook: https://m.facebook.com/baylis.glass.5 Webstore: whitbaylisstudios.bigcartel.com

Whit Baylis

Facebook: https://m.facebook.com/baylis.glass.5 Webstore: whitbaylisstudios.bigcartel.com

Jessica Boggs EmpirebyďŹ re@gmail.com