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Do your part to grow the culture. Let our advertisers know that you saw them in Sativa Magazine. Atmos Rx Bubble Bowls Cannabis Camera Cannaline Cannaventure Seeds Celebration Pipes EZTrim Flipz Guardian Data Systems Happy Daddy Products Herbivore Designs Kasher Tools Kushed Clothing Method Seven MTG Seeds Shaman Genetics Stoner Couture Threefourink
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Sativa Magazine Online Issue No. 8 September 2013 President & Publisher Tiffany Greene Editor-in-Chief Michael Carter Deputy Editor-in-Chief Mercedys M. Managing Editor & Design Director Cheryl Addington Marketing Director Jason Osburn Carly Hofer Art Director Josh Clappe Designers Emily Cain Jordan Dusek Heidi Hemp’ography Mekinsey M. Molinaro Lauren Rae Photographers Max Bortnick Heidi Hemp’ography Executive Editors Mercedys M. Gloria Martinez Editor Christie Rears Writers Jade Christian Richard Drew Gina Epps Hippy KK Kip Jarvis Paul Josephs Joe Martin Mercedys M. R. Richards Emily Riopelle Sarrah Safi Karen E. Szabo Samuel Wells All contents ©2013 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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Decriminalization is only the first step
On August 29, the Justice Dept. issued a memo stating that it would not block states seeking to ease laws on medical or recreational Cannabis use. We are making progress on the collapse of Cannabis and hemp prohibition. It’s a long road and a tough fight. It has strength beyond that of the Berlin Wall. But, as did that famous wall, the walls of prohibition WILL come down! We are done watching our taxes pay to hold our children in prison. We have seen many of our family members treated as criminals because of drug problems or drug possession. That needs to stop. Many people have been caught up in this drug war and have no chance at becoming a state official, a police officer, or hold office. All because they were in a car with someone and there was Cannabis in that car when it was searched. Everyone in that car is often found guilty. A life is forever changed. It doesn’t matter if they inhaled or not. That person is now considered a criminal for the rest of his/her life. We’ve allowed the prison system to profit off our families’ and friends’ problems. Health and mental problems. I have read that only two percent of people who use drugs abuse them. That means 98% of us have a chance at being turned into criminals because the government wants to control the two percent. So those of us that can handle medication, or drugs of any kind, without abusing them are being punished because of a small fraction of society. Cannabis is enjoyed like a fine wine and used as a medication for many maladies. I have been a witness to the many benefits it provides sativamagazine.com
medically and recreationally. Many medical benefits were discovered in Cannabis before it was made illegal. Once it is rescheduled as a drug with medical benefits, research will move with great speed and many beneficial drugs will be come from its myriad chemical compounds. I want to bring up a piece of data that slipped through without proper citation in the last issue of Sativa Magazine. One of our infographics came from information derived from the mmjbusinessdaily 2013 Factbook. We have not had a chance to review the book itself, but the teaser facts they provide are very helpful. We look forward to telling you more about them and the wonderful businesses that are finding success in this amazing new industry. I also want to give a special thanks to NORML and the Seattle Hempfest for the invitations to the VIP parties. We greatly appreciated the warm welcome and we are going to do everything we can to make sure the movement continues in a forward and positive direction. In order to exact a future where we have the freedom to purchase Cannabis legally as responsible adults, we need your help. We’d love to publish your comments. Email me, and show the world that you’re in on the fight.
Michael Carter Editor-in-Chief michael@sativamagazine.com
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September 2013 columns Business Highdeas
Ganjapreneurs, start your engines! It is time. Pick your niche.
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The Need for Seeds
The power of seeds! Paul Josephs on, well, hash!
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Incredible Medibles
Buffalo chicken wing dip Another canape extravangza from Hippy KK.
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Special Report: Seattle Hempfest 2013
Be the change 14 Hempfest was awesome.We were there. The whole world is watching 18 Washington and Colorado and a battleground update. 27 Did You Hear? An occasionally appearing compendium of legal news. 68 Green Candy Press Hippy KK. looks at two new titles from the publisher. Sativa Magazine is proud to feature artwork from Vulcan and Whitey Williams throughout this issue.
features
The Legalization Issue SSSnakes in the Grass An historical overview of anti-hemp-ness, part two. Eat It, Anslinger! A concise rundown of the Aug. 29 Justice Dept. memo. Seth Green: The Cost of Prohibition Sarrah Safi tells one man’s story. The Cost of Prohibition Kip Jarvis tallies it up. Winning the Race to Legalize Should the U.S. be at the forefront of the race? The Top Ten Budding Cannabusinesses Joe Martin looks into the future and picks his faves. Raids: A Message? Are the feds trying to tell us something? Can Connoisseur Cannabis Be Mass-Produced? A view from the fence. State Stances on Cannabis Legalization A up-to-the-minute rundown on where we stand. To Patent or Not to Patent? The pros and cons of branding your baby. Portfolio Our monthly collection from around the country. sativamagazine.com
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Ganjapreneurs, start your engines! Cannabis research bank Researc h drives policy decisions, the development of new market offerings and technological breakthroughs. For this reason, governmental bodies and private entities will pay top dollar for current, thorough data collected by well-qualified researchers. Now is the time for action for the ganjapreneur looking to capitalize on these facts by launching a Cannabis research bank. Research about the Cannabis industry can already be found for sale online, but the opportunities extend well past this basic business model. Ganjapreneurs and the regulatory bodies charged with defining the contexts in which they can operate would benefit from access to more detailed research about the consequences of policies on economic growth; investigation into how best to balance safety and efficiency; and possible applications of the Cannabis plant, just to name a few possible subjects. Research on trends in consumer needs and preferences will also be sought by the cannabusinesses with enough foresight to invest in understanding their potential customers.
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Various revenue sources could make this business highdea feasible for the right team. With the right credentials and connections, a Cannabis research bank could land the lucrative government-sponsored research projects bound to be deemed necessary by our bureaucrats as our nation addresses the looming question of how we will move past Cannabis prohibition. Research projects could be built to meet the needs of sponsors, or they could be independently-funded so that the results would be offered for sale to all without stipulation. Many u nknowns need to be
investigated as America treks further into the unchartered territory of creating a legal, regulated Cannabis industry. A small group of research-savvy ganjapreneurs can capitalize on this opportunity but first must be united by the shared vision of providing the answers we need to take the Cannabis industry to the next level. Available URLs: bankedthoughts.com 100dollarstudy.com siftedthoughts.com vacuumrelease.com cachetogo.com brainbanker.com
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Questio
Voting apps Today, mobile users can share their insights directly from their phones, commenting on everything ranging from pop-culture trends to political questions. But this business model could quickly advance with a few technological improvements and a little ingenuity. For starters, a voting app could collect data from Cannabis consumers. Imagine being able to record real-time data about the effects of individual strains, consumers’ opinions on emerging cannabusiness trends or any other topics which ganjapreneurs might find useful while adapting their business strategies. The potential to receive feedback from millions of people within a short window would compensate for the lack of ability to follow the meticulous research methodology most surveys use to ensure that a relatively small survey population can represent the public opinion at large. Incentives such as complimentary downloads of apps, ringtones, etc., could be offered to increase voter turnout. The data could then be sold to research companies such as the Cannabis research bank proposed above, to individual corporations looking for answers to specific
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n 420 :
What is y m e t ho d ou r p r e f e r r e d o ingestio f Cannabis n? Sm o ke Ea t Top ical Ot he r:
questions or to media sources like Sativa Magazine. This technology could eventually work its way into our democratic process with the correct technological developments. If cell phones could take reliable fingerprints or iris scans to verify the voter’s identity, cell-phone-voting apps could prove a convenient alternative to our current voting system. For added security, the app could even trigger cell phones with front-facing cameras to record a video while the voting occurs so that video evidence could be used to resolve disputes when the authenticity of a vote is in question. Of course, the powers to-be will likely fight such an evolution of our voting procedure every step of the way. Even though such a shift is
sure to reduce costs of collecting votes and would minimize the environmental impact of the process, it is sure to increase voter turnout among younger voters, a step which has proven to rock the boat as the 2008 and 2012 election cycles demonstrated. Nonetheless, tech-savvy ganjapreneurs can develop the technology now to capitalize on current opportunities. And when Americans are finally ready to demand it, we’ll have the technology to establish a more environmentally-friendly, democratic voting system. Available URLs: countpedia.com touchchange.com Electballot.com opiniontouch.com opinionclick.com voteclickcount.com S
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Imagine standing in the middle of tens of thousands of jubilant Cannabis supporters spread out for miles, with more bands and speakers than you can possibly make it to or even keep track of. Now add in hundreds of vendor booths selling everything from Chinese glass to custom artwork to specialty services and you’ll have a basic idea of Hempfest. But until you attend, you cannot possibly understand the atmosphere, the sentiment or the community which takes over three waterfront Seattle parks for a weekend each year to simultaneously demand our rights and celebrate our hard-won victories. This year’s protestival had a special distinction as the first since historic recreational legalization.
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But our work is only just beginning, echoed Hempfest speakers. Lawyer and activist Douglas Hiatt summed up the theme of Friday’s festivities when he said, “Without a federal solution, there is no meaningful reform.” Federal authorities can step in and destroy the lives of citizens working within state laws at any time for almost any reason; you don’t have to do anything wrong to get in trouble. Friday’s theme rang clear throughout the weekend: until our federal government finally abandons their crusade against Cannabis with a change in the herb’s scheduling, they have the power to wipe out I-502, Amendment 64 or any similar measures being considered by other states.
Still, hopes flew high at Hempfest. The Cannabis community knocked two bricks out of the wall in 2012, and the movement has gained momentum. But the Cannabis community must keep tearing into the wall until the entire structure crumbles. Only then will patients have reliable access to the medication they need. Only then will our personal liberties be protected. Only then will the potential of hemp be unleashed. And only then will cannabusinesses thrive. The movement is just now getting back to the place we were at in 1972, warned Dr. Dminic Corva, Executive Director of the Center for the Study of Cannabis and Social Policy. He further cautioned that repeating history is not
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By Mercedys M. Photos by Heidi Hemp’ography
inevitable and all must strive to help continue it to move forward if the movement is not going to be extinguished again. Advice from the experts: how to be the change Kari Boiter, a champion for drugwar prisoners: “Stop looking at what others can do and ask yourself what you can do.” Steve DeAngelo, Director of Harborside Health Center: “The best way to be effective as an activist is to find a way to put your passion to use for the community. No matter what your passion is, it can be used for the movement. Writers can write, accountants can crunch numbers for non-profits, artists can raise awareness, socialites
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can network and advocate.” Douglas Hiatt, lawyer and activist: “You are a change agent. All the time. Everywhere you go.” So act like it. Start discussions waiting in line at the pharmacy, share your story or the story of a victim of this war, talk about the facts, and engage respectfully with people who disagree with you. We create a knowledge base which addresses people’s fears and connect with other social movements. Various speakers also urged Cannabis consumers to come out of the closet if you can do so without losing your job. Confess to your parents; tell your neighbors; don’t deny enjoying a little ganja the next time another PTA member asks you. The world needs to see
Douglas Hiatt
that Cannabis consumers can be responsible, productive members of society. They need to see the other side of the story, on an individual basis. Advocacy groups can only take us so far. “You know the old saying. No one can do everything. Everyone can do something. It’s true,” encouraged Douglas Hiatt. Just imagine how fast the movement would gain strength if every supporter of Cannabis reform took this advice to heart, and became the change they want to see in the world. S
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By Mercedys M. Illustration by Josh Clappe “The eyes of the whole world will be on us. On Washington,” warned Steve DeAngelo. This sentiment rang throughout Hempfest weekend. Organizer and speakers repeatedly warned that the global community is watching the emerging recreational Cannabis industries to see if they can provide a benefit, not just to Cannabis consumers, but to the community at large. Historically, Colorado and Washington have been among the leaders of social movements in the United States. Both were among the early adopters of woman’s suffrage laws. Both were among the first to protect medical Cannabis usage under recommendation of a medical doctor and are among the early adopters of same-sex marriage or union laws. And today, these two states are undertaking a social experiment with global repercussions with their plans to regulate the recreational Cannabis industry. When the United States led the campaign to require international regulations which outlawed Cannabis, virtually every country on earth followed suit. Today, they are watching to see how these two Western states fare in their blatant disregard for federal and international mandates. International news agencies are closely covering the developments, people in cafés in Europe are discussing the new developments as they arise, entrepreneurs from around the world are sitting back, taking notes and planning how they too can get in on the action if we are successful. And others are watching, with bated breath, to see if they should move forward with their plans to enact legislation similar to I-502 and Amendment 64.
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Ganjapreneurs in Washington and Colorado are pioneers, entering unchartered territory. Just like those who made the Westward journey decades ago, many of these brave pioneers do not know all of the facts nor do they have all of the tools necessary for success. But with tools evolving every day, the community uniting, and clarification on policies gradually forthcoming, success is within reach if the pioneers play their cards right. Make no doubt about it, this is a big “if.” With the eyes of the world watching, even a little stumble could have grave consequences. Ganjapreneurs must carefully consider all aspects of their cannabusiness for they are not just operating their own company, but serving as ambassador of the entire Cannabis industry. Every single aspect of their business — their books, marketing materials, logos, to employees and representatives — are going to be highly scrutinized, likely with a finetooth comb. Regulators and skeptics alike are watching and just waiting for ammunition to use in this ongoing war. Pioneering ganjapreneurs must understand the nitty-gritty of all new legislation so they can play by the rules. If a rule is an unwarranted burden, the community must fight to change it rather than blatantly disregard it. The Cannabis community must also strive to be socially conscious so that our impact is far greater than just creating jobs and tax revenue. Cannabusinesses can minimize their detrimental image by carefully choosing their location, marketing materials and employees continued on page 72//
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the need for seeds Paul Josephs
The power of seeds With widespread Cannabis legalization closer to becoming a reality every day, it is important to keep seeds in mind and ensure that the people will have the same access to them as they have to cured flowers and other Cannabis products. A nod to the mighty seed The Cannabis seed is where all herb originates; the must-try clone-only varieties currently in vogue came from seeds. Seeds are potential plants, and in the case of Cannabis can remain viable for many years. They are tiny genetic vaults holding valuable future plants just waiting for their time under the sun — or lights. A seed is also a time machine of sorts. Seeds from a project 15 years or more years ago might have been kept around because the breeder is waiting for another complementary breeding line to develop, or for when tastes have changed and now favor that particular strain. It’s not like the seeds take up a lot of room or require special storage, and they can move easily with a grower or breeder. Clones are great, but it’s hard to keep a whole host of
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them going for years, for obvious reasons. Seeds equal independence As we witness the increasing availability of clone-only cuttings, feminized seeds and autoflowering strains, it can be easy to rely on them for your growing needs. Not that it’s a bad thing, but note that the ability for the grower to have breeding opportunities with them are very limited without access to some regular seeds or a male clone. Clones could be used for making seeds, but you have to trust that the clone is labeled correctly and you likely do not know what the stability of the genetics are. Regardless, you will need a male plant and those are easily obtained from regular seeds. Same story for feminized seeds and autoflowering plants — you need seeds for the males, or an elusive male clone. Cannabis differs from seed-bearing fruits and vegetables by the distinction of usually being sold barren of seeds. If you want to grow your own tomatoes from
fruit picked up at the local farmers’ market so you won’t have to pay for them next year or just for the joy of it, that’s easy to achieve. Not so with seedless Cannabis flowers. If you want to have control and stable continuity with your own Cannabis supply, a few dozen seeds of diverse strains should be enough to ensure many years of growing and breeding independent of commercial offerings. Controlling interests People who have ac cess to Cannabis seeds are empowered with the ability to breed. As Cannabis becomes legal on a state-by-state basis, it will be interesting to see whether individuals are allowed to grow their own, and, if so, the manner in which they can legally obtain clones, or feminized and regular seeds. If you want to breed your own Cannabis, you are going to need regular seeds that will generate some males along with the females. If they are not available, then your choices are limited to whatever is offered to you as a consumer. continued on page 79//
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August 1: Uruguay may become the first country to legalize and regulate the production, sale, and consumption of Cannabis. A bill has already been passed by Uruguay’s Chamber of Deputies, and must next go through the Senate. The bill then must also be approved by President Jose Mujica, who introduced the bill. August 1: Governor Pat Quinn signed a bill to make Illinois the twentieth state to legalize medical Cannabis. The law will implement a four-year pilot program beginning on January 1, 2014 and will allow people with serious diseases to buy up to 2.5 ounces of medical marijuana at a time, after obtaining an ID card. August 8: Prominent CNN-affiliated doctor, Sanjay Gupta apologized for misleading his viewers about the dangers of Cannabis. He stated that he: “mistakenly believed the Drug Enforcement Agency listed marijuana as a Schedule I substance because of sound scientific proof.” He pointed out that overdosing is a very real threat when it comes to prescription medication, but he did not encounter even one case of Cannabis overdose. Additionally, he overviewed the relatively low risk of a Cannabis consumer developing a dependency, outlined the proven medical potential, and called for the government to finally address the mislabeling which led to our current fiasco. The full text of his statement can be read here: http://www.cnn.com/2013/08/08/health/ gupta-changed-mind-marijuana August 14: Oregon became the thirteenth state to legalize dispensaries when Governor John Kitzhaber finally signed the twice-rejected bill. The bill directs the Oregon Health Authority to create a registry of all dispensaries and to regulate and inspect them. In order to register, a dispensary must pay a $4,000 annual fee. August 16: Governor Chris Christie revealed he would agree to sign a bill that would relax medical Cannabis laws in the State of New Jersey, if a few changes were made. As it now stands, the bill would add edible Cannabis to the options
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a compendium of legal news from around the country...and beyond for medical patients and remove the limit on the number of strains a dispensary can offer. However, the bill also contains a provision that would allow children access to medical marijuana with a doctor’s approval. In order to get a medical marijuana prescription for a child under the current law, both a pediatrician and a psychiatrist must approve. To the frustration of many concerned parents, Christie wants to eliminate that provision. August 20: Hearings were held at the end of August to outline licensing specifics for both recreational and medical marijuana sellers in Colorado. Final regulations will not be set until mid-October, but the proposed application fees for recreational businesses would be $5,000 in addition to licensing fees ranging from $2,750 to $14,000. Operations that opt to sell both recreational and medical marijuana will be charged double. Officials justify the high prices with the projected costs for seed-to-sale tracking and extensive screening processes. Aug. 29, Washington, D.C.: After nine months of tense silence, the Department of Justice has finally announced the federal government’s acceptance of states’ Cannabis tolerance laws. Attorney General of the United States Eric Holder declared that federal agencies would allow states to regulate Cannabis, but that the plant would remain classified as an illegal drug. Read Kip Jarvis’ report on the details on this significant shift in the government’s stance on page 33. S
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incredible medibles hippy KK
Buffalo Chicken Wing Dip A robust dip perfect for every fall gathering. Sure to cause a fit of social media activity. Have the recipe ready to share, because this one’s a keeper.
Yield: 15+ servings Prep Time: 35 min., including baking. Ingredients: 2 chicken breasts 8 ounces cream cheese, softened 1 cup red hot sauce (I prefer Franks® RedHot Sauce) 8 ounces ranch or bleu cheese dressing 1/3 cup Cannabudder, melted 1/2 cup (approx.) Cheese (I like colby jack, but any kind you like is good) Crackers and/or tortilla chips for serving. You will also need a 9" x 9" pan or casserole dish. 1 Spread the cream cheese evenly in bottom of dish.
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2 Boil chicken for ten minutes or until done. Allow to cool, then shred. Stir the melted Cannabudder, chicken and hot sauce together. Pour over cream cheese. 3 Pour the salad dressing over the top of chicken mixture. 4 Sprinkle just enough cheese on top to cover chicken mixture completely. Bake for 25 minutes. 5 Remove from oven and allow to cool slightly before serving. 6 Serve with crackers or tortilla chips. Celery sticks are a great option for something cool on the side. It’s doubtful, but if any dip is leftover, refrigerate for up to 7 days. To reheat small portions, place desired amount in microwave for one minute on high. To reheat large portions, use a low temp oven and heat for approximately 10-15 minutes.
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Episode Two — Commentary by Joseph Robert Cowles
E
pisode One of this discussion in last month’s Sativa Magazine touched briefly on the antics of a couple of robber barons from a century ago, who determined that it would be advantageous to their respective business empires to destroy the Cannabis/hemp industry. We urge you to go online and become familiar with this historical information, to discover how and why this important, productive and valuable natural substance came to be treated as a social pariah. Learning about the propaganda that has been used to sway and control public opinion will help us become aware of the pitfalls the “control agencies” face in attempting to regulate Cannabis use, now that voters are bringing about the repeal of prohibition.
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The exploitative film of the 1930s, “Reefer Madness,” can be found on the ‘net, as well as detailed information about Hearst and DuPont. While you’re at it, you’ll want to learn about the third member of this self-serving triarchy, Harry Jacob Anslinger, who for 32 years was commissioner of the U.S. Treasury Department’s Federal Bureau of Narcotics. This is historical information you can quickly reference from your computer. It will enable you to understand how Cannabis prohibition laws came about and destroyed lives — while engendering huge international criminal networks and making the bad guys filthy rich. The point is, that the negative propaganda, legislation, enforcement organizations, incarcerations, unreasonable phobias, and
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Harry Jacob Anslinger
and women working for our control and enforcement agencies have for generations been schooled and directed and paid to think and behave negatively toward this terribly maligned natural plant substance. For most, their very livelihood has depended on their doing so. Even though a better-informed public is now beginning to successfully overturn antiCannabis legislation, it is inappropriate to assume that the decades of unreasoned and unexamined assumptions and brainwashings will be easily and quickly overcome.
the rest of the ongoing sordid and immoral nonsense about Cannabis, which our society has been dealing with since the days of our great-grandparents, means cleaning up the mess isn’t going to be easy. The states of Colorado and Washington have bravely taken the first tentative steps toward righting the wrongs of Cannabis prohibition, and are to be applauded for doing so. Tentative is the operative word here — meaning provisional, uncertain, hesitant. Like a toddler learning to walk. Or in this instance, like someone who’s been mugged and beaten, had every bone broken, is just now is getting the casts off, and needs a tremendous amount of help to get on with life. We recognize that the repeal of Cannabis prohibition must take place at every level: local, state, national — even international. But how is this to be accomplished? The men
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epeal means that the people working in the control agencies must do an abrupt about-face. They will have the near-impossible task of examining, with utmost care, everything they think they know about the properties of Cannabis and its use: each belief, assumption, consideration, prejudice, rule, law, action … without exception. In establishing their new regulations, they must discard every shred of information that is not absolutely true, and retain only that which is correct and accurate. Any action less than this will only pander to the prejudicial lies and brainwashings our entire culture has inherited from those two robber barons and their snake-charming enforcement commissioner. If we truly want to bring about meaningful, lasting change — whether regarding Cannabis issues or any other inequities and erosions of our rights — we must all be prepared to investigate, study, learn, educate others, and speak out. S
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2 g. Au
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Eat it, Anslinger! By Kip Jarvis In case you missed it, the feds have given their tentative consent to the legalization efforts in Washington and Colorado. On Thursday, August 29, Attorney General Eric Holder announced to the governors of each state that the Department of Justice (DOJ) would allow the popularly elected initiatives to take effect. Considering Cannabis’ lingering status as a Schedule I drug under the Controlled Substances Act, the DOJ has a legal right to sue both states on behalf of the federal government for allowing such measures to be enacted. Mr. Holder’s announcement basically indicates that, for the time being, the DOJ has no intentions of doing so. So yes, this is a pretty big deal. In addition to Eric Holder’s message to Governors Inslee and Hickenlooper, Deputy Attorney General James Cole simultaneously released a memorandum solidifying the statements of his boss. The memo is addressed to the US Attorneys, who are tasked with prosecuting federal offences; its subject line reads: “Guidance Regarding Marijuana Enforcement.” As such, this is simply the suggested protocol for the US Attorneys, which is reiterated within the document, and in no way is a legally-binding directive, also emphasized within. That said, both governors will surely welcome the news. The announcement and memo both highlight eight priorities that the DOJ will continue to enforce as it relates to Cannabis. The memo itself reads as if this announcement is simply a casual courtesy to
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reaffirm an unchanging policy. However, this is most likely referring to the Ogden Memo of 2009, which essentially called for a de-prioritization of Cannabis enforcement by the DEA and US Attorneys in states that had legalized medical marijuana. Of course, this was followed by a national crackdown against dispensaries two years later as a quasi-rebuttal to the Ogden memo. The 2011 memo that initiated this harsh rebuttal was authored by Deputy Attorney General James Cole. Take that information as you will. Still, Mr. Cole’s current memo does give the go-ahead for Washington and Colorado, provided they regulate the program efficiently and don’t allow their citizens to breach the eight listed priorities. When one is well-versed in Washington’s I-502 Bill, as all you Sativa Magazine readers no doubt are by now, you’ll notice that all are thoroughly addressed in Washington’s law. This suggests that so long as the two states can maintain their planned regulation and enforce wrongdoers, the DOJ will refrain from interfering. This, in turn, sets a cautious optimism for other states considering legislation that are prepared to design a well-regulated system. Time will tell. Stay tuned to Sativa Magazine for news on this subject, as you know we’ll be keeping a close watch. To have your own peek at the DOJ’s official announcement, as well as a link to Mr. Cole’s memo located under Related Material, visit this link to the DOJ’s website: http://www.justice. gov/opa/pr/2013/August/13-opa-974.html. S
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
seth green
taking matters into his own hands By Sarrah Safi
“Everyday life is awful for me.
I hurt constantly in
my bones and muscles on the right side. I have had several surgeries on my foot but it is still hard for me to walk on it. I can’t even make it through the grocery store. It has caused major depression and I have no social life.” 36
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These are the words of a 23-year-old sufferer of cerebral palsy, seizures and scoliosis. Since childhood, Seth Green has encountered many health issues that have only worsened with time. On average, Seth was having 60–80 seizures per week, constant muscle spasms and tightness on his right side caused from cerebral palsy, symptoms of scoliosis due to the tightening muscles, and high anxiety from the anticipation of a seizure episode. To top things off, depression had already made an entrance into Seth’s life. That is, until the day he began searching for alternative medications. “Cannabis improves my health issues tremendously. It helps me relax... I have not been having near the amount of seizures I used to… It helps me from being addicted to medications for pain. I have a social life because it controls a lot of my anxiety.” For Seth, Cannabis use isn’t about getting ‘high’ or ‘stoned.’ It is about finding a safe, alternative method for subsiding his constant pain, relaxing the muscles in his body, keeping seizures at bay, as well as reducing his anxiety and depression. Cannabis does all of this for him — more so than the medications his doctors had been prescribing.
“I have contacted all of the Democrats in Tennessee and Republicans. . .they responded by saying they are not currently dealing with that issue at the moment. Not enough signatures and some do not support it.” uses. The only way Seth can receive his medical Cannabis is by buying it off the streets — a risky endeavor for anyone. Currently, Tennessee law states that possession of one-half ounce or less of Cannabis is a misdemeanor for the first and second offense with the third offense racking up a felony with a potential sixyear prison sentence. For people like Seth who can easily consume one-half ounce of Cannabis in a short time while trying to treat his conditions, these constraints are unreasonable.
“I was taking medication that can make certain conditions of mine worse like my seizures. They are addictive and have very bad side effects… I informed my doctor of medical Cannabis after finding that there are fewer side-effects than prescription medication.”
Not only is purchasing Cannabis off the streets extremely dangerous for obvious reasons, there is always the possibility none is available to purchase. If purchased from a provider of medical Cannabis, Seth could worry less about where and when he can buy his medication and be able to focus solely on treating his medical conditions. But rather than gripe about the injustice, Seth has set out to change the way Tennessee perceives Cannabis.
So, did Seth Green receive a recommendation for medical Cannabis? Unfortunately for him, it simply isn’t that easy. Living in the state of Tennessee, Cannabis is still an illegal drug and is not recognized by state law for its medical
“I have contacted all of the Democrats in Tennessee and Republicans...they responded by saying they are not currently dealing with that issue at the moment. Not enough signatures and some do not support it.”
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But Seth has not allowed this blatant disregard for his needs by those trusted with the honor of representing the people deter him. He is determined to take matters into his own hands to ensure his voice is heard. Presently he is collecting signatures on a petition to legalize medical Cannabis in Tennessee and has created a Facebook page titled, “Greener Pastures,” where others may share their success stories using Cannabis for medical purposes. “I wish the policies would change because it helps so many people with diseases and disabilities. If it helps keep people from suffering then why not legalize it? Alcohol is much worse, but it’s legal.” A perplexing question indeed. Why isn’t Cannabis legalized across the nation when it is recognizably a plant, helps hundreds of medical conditions, and is safer than both cigarettes and alcohol? The shadows of prohibition still linger in over 30 remaining states, trapping medical consumers in a confusing fog of legalities. With legislation taking months upon months to sort out by our elected politicians, the wait has become unbearable. Seth continues to live in Tennessee, but not without the thought of relocating until Tennessee laws change. If Seth is considering relocating — how many others out there are considering it due to Cannabis prohibition? A striking question for states who are already suffering from economic troubles. “I would move to Colorado because Cannabis is legal and they have better healthcare. They have specialists for my condition.” Because of prohibition, people like Seth Green must not only worry about their health conditions but their status as a loyal citizen
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BC (before Cannabis) AC (after Cannabis) 60–80 seizures per week
3–7 seizures per month
Extreme anxiety
Little/no anxiety
Cerebral palsy symptoms
Decreased muscle pain/ increased relaxation
Depression
Increased motivation to socialize
Rx side effects
No side effects
No criminal record
A criminal by federal and state definition
of this country. It is not by choice that he is a “criminal” — that is the label our government has given him. We can only hope that more and more states will come to the realization Cannabis does not need to be prohibited and labeled as a dangerous drug. It is a plant, an economic liberator, an environmentally safe alternative to petroleum products, and most importantly — a medical savior. “Cannabis can save lives. It has me, because there for a while I was thinking about taking my own. It brought me back to reality, and I’ve found my place religiously and socially as a successful member of society.” S
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
THE CO$T of By Kip Jarvis Illustrations by Emily Cain War, Ugh, What is it Good For? In a few decades, the younger generation will be able to look back with a historical perspective on the War on Terror and judge it. With this hindsight, they’ll be able to count the costs, tally the dead, and gauge the missed opportunities. This generation will stand in wonder and dismay at how much blood and treasure was spent fighting a concept, an idea whose makeup ultimately lies in the eye of the beholder, and by its very nature, can never truly be vanquished. For my generation, we have the War on Drugs. The frontlines of this conflict have swelled over the decades, extending beyond our borders into untold nations, costing over a trillion dollars, and has made little to no headway in meeting its initial objectives. As for Cannabis, the war’s length is quickly approaching a century. Although Cannabis remains a single zone in the war at large, as the third most popular intoxicant in our country (behind alcohol and tobacco, which have the luxury of being legal), it is by far the largest front.
objectively weigh its true costs. After all, as our current War on Terror has taught us, military forays, covert or otherwise, into unrestricted global theaters can get very expensive, very quickly. Equally distressing for this war is the human cost within our own borders, as everyone on this planet knows that the United
Given the historical perspective afforded by the duration of this arbitrary war, one can
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of Prohibition States is the highest consumer of drugs, and just about everything else, so this war is effectively half-waged on ourselves. On top of this is the ramifications our global crusade has placed on our neighbors in the Americas, which has stained our integrity and relations. With all of this despondent number-crunching
at our finger tips, countless professional experts, academics, celebrities and activists have begun calling for an end to the War on Drugs.
The Costs Let’s get to the brass tacks. Current research indicates that since 1971, the United States has spent over $1 trillion dollars funding the War on Drugs. The 2013 National Drug Control Budget proposal chimes in at a requested $25.6 billion dollars, which is a $415.3 million increase from the 2012 budget (these numbers can be viewed at http://www. whitehouse.gov/ondcp/the-national-drugcontrol-budget-fy-2013-funding-highlights). This is only the requested amount put forth by the administration and actual figures may vary pending approval and application. In the case of the 2012 budget, all four categories received lower amounts than those requested. The table below is comprised of data found on each year’s ONDCP budget (Office of National Drug Control Policy) showing the spending breakdown for each specific year, noted in the top row. The left column shows the category of allotment as designated by the government. The meat and potatoes of
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
the table shows the amount spent in billions, rounded to the nearest tenth, and the percentage of funding of that year’s budget for each category. So, in 2008, $1.75 billion was spent on Prevention, which was 13.3% of that year’s ONDCP budget. Got it? To clear up the categories: Treatment funds social programs aimed at treating substance abuse; Prevention manufactures propaganda to persuade people to avoid drugs (a la Above the Influence commercials); Domestic Law provides supplemental income to criminal justice organizations to arrest and prosecute drug offenders; Interdiction focus on intercepting smuggling on the borders and coasts; and International includes money given to other countries in the Americas to assist their governments in addressing all of these categories in their respective sovereignties. Looking at these numbers, it shows that the percentages remain predominantly constant with only slight fluctuations in
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allocation under President Obama. The Obama Administration has offered rhetoric for a stronger emphasis on treating substance abuse as a public health issue as opposed to a criminal one. ONDCP director Gil Kirlikowske, during a hearing before Subcommittee on Domestic Policy in April 2010, even noted that although 23 million Americans aged 12 and over require treatment for drugs or alcohol, only 10% receive it. While addressing this woeful statistic is well reflected in the elevated percentage of the budget directed toward treatment, the goodwill is tempered by an even more substantial increase in funding for domestic law enforcement, which has always received the lion’s share of the Drug War budget.
The Enemy Within Since this part of the war is conducted within our own borders and targets our own citizenry, we should also examine the costs of incarceration. In 2011, domestic law enforcement allocation amounted to nearly
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$9.4 billion. FBI data shows that there were 1.5 million arrests for drug-related offences in 2011; 81.8% of these were for possession charges. Of these, Cannabis is by far the highest, at 43.3% (the number two spot is held by ‘other dangerous non-narcotic drugs’ with 17.2%). This amounts to over 660,000 arrests made for Cannabis possession in 2011. In fact, as the Huffington Post noted in a 7 January 2013 article, arrests for marijuana possession outweighed arrests for all forms of violent crimes combined in 2011, by nearly 20%. Although these arrests don’t always lead to lengthy jail time, the tab for processing these consumers and their accompanying court time can cost the taxpayer a couple thousand dollars per pinch. Aside from this notable expense for the taxpayer, it can be positively crippling for the poor Cannabis fan being rolled. There’s of course the fine associated with the arrest, likely court fees, and probable expenditures to attend mandatory substance abuse treatment programs. On top of this, and arguably the most damaging aspect, is catching the everwatching eye of the criminal justice system. The Brooklyn Rail reported that in 2010, New York authorities arrested 50,383 people for Cannabis possession. This cost the Big Apple taxpayers over $75 million for arrest, jailing, and prosecuting fees. Furthermore, 68% of those arrested were under the age of 30 and 70% of those arrested for Cannabis had never previously been convicted of a crime. While these figures apply to New York City, they appear emblematic of the entire country and highlight that a belligerent criminal justice system, fueled by the Drug War, is far more damaging to America’s youth that Cannabis ever was, is, or could possibly be.
Herein lies one of the more distressing aspects of the War on Drugs. While federal government spending towards the Department of Education is substantially larger than the ONDCP budget, the states’ are responsible for the vast majority of funding for both primary education and managing their prison population. Enforcing drug laws are the primary reason for prison construction and inmate population growth in the United States. A 7 December, 2012 CNN article (written by Richard Branson, no less, and he’s a knight) cites an important fact, via the Pew Research Center, that “it costs the U.S. an average of $30,000 a year to incarcerate an inmate, but the nation spends only an average of $11,665 per public school student.” Cost per student can vary greatly depending on the state, though prisoner costs are more standard. Regardless, with around 18% of inmates under state jurisdiction incarcerated for nonviolent drug offences, fewer drug laws will lead to fewer prisoners and fewer prisons, which will save any state millions of dollars annually.
Our Civic Duty This article highlights a mere sampling of the negative impacts brought on by the War on Drugs. Lest we forget that the drug war in Mexico has surpassed 60,000 deaths (those documented, mind you), is not ending anytime soon, and is predominantly due to the United States’ love-hate relationship with drugs. While we fund the Mexican government to fight the cartels, our government is in bed with our own corporate drug cartels, Big Pharma. Between 1997 and 2007, treatment admissions for prescription pill abuse was up 400% and drug related deaths in this country have now surpassed gun deaths, with prescription drugs continued on page 72//
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
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By Kip Jarvis Illustration by Josh Clappe
W
hy shouldn’t Americans want to be the first to legalize Cannabis and hemp? We had a pretty good showing in the Space Race, landing on the moon and all. Our competitive spirit in the Arms Race was so impressive that, despite the absence of any real competition, we’re still racing in it at break-neck speed. So what about the race to legalize Cannabis? Nobody’s truly done it yet in the modern age and the benefits from doing so could be a massive boon to science, industry, and human rights. So what’s stopping everybody? Why does no country have the stones and the foresight to just go ahead and legalize Cannabis for recreational use? Now, for our international readers viewing this and saying, “nobody cares about Cannabis here, so it’s pretty much legal.” Sorry, good sir or madam, but that doesn’t
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count. Nearly every country has something on the books that deals out some level of punishment for certain amounts of Cannabis, depending on the locale. Unless you live in North Korea, which has nothing on the books at all regarding Cannabis, there is some penalty associated with the recreational side of the plant. As for North Korea, I’ve never heard anyone espouse, “I just got this awesome DPRK-ronic that was approved by the Beloved Leader himself!” While one shouldn’t discount something solely on the merit of their value in the global market, North Korea’s lack of informational or smokable export leaves much to be desired in the context of this particular conversation. Even Amsterdam, the eternal must-go vacation destination for most Cannabis lovers, is merely a social experiment in the Netherlands, albeit a markedly successful one. With the exception of those wonderful
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Full legalization could lead to unwanted headaches in coffee shops, Cannabis sales and possession remains illegal both within the Dutch capital and the rest of the country. While the technical decriminalization of Cannabis in the Netherlands and many other places means you will probably only receive a fine instead of jail time, its illegality remains.
Global prohibition
It’s not entirely coincidental that all these nations provide, at the very least, lip-service to Cannabis prohibition, save for global pariah North Korea. The plant is actually regulated under international law. An excellent source on this topic, Cannabis Policy: Moving Beyond Stalemate by Robin Room, Benedikt Fischer, Wayne Hall, Simon Lenton, and Peter Reuter, is a must-read for anyone interested in the international subtexts of this issue in the west. In chapter six, the authors explain Cannabis’ status under international law and theorize various ways that a specific nation could withdraw from the agreement. According to the authors, the primary crux under international law lies in the United Nation’s 1961 Convention and the 1988 Convention. Under the 1961 Convention, all member nations must “limit exclusively to medical and scientific purposes” the “production, manufacture, export, import, distribution of, trade in, use and possession” of substances covered therein. Cannabis is designated as a Schedule I and Schedule IV substance, the former meaning that it must be treated as a “punishable offence.” The 1961 Convention later references Cannabis specifically under Article 28, where it decrees
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that it be licensed and controlled, and that the state act as the sole buyer and wholesaler, much like state-controlled sale of alcohol in places like Connecticut and Alabama. The 1988 Convention elaborates on this mandate by stating that producing, selling, or possessing substances covered under the 1961 and 1971 Conventions be treated as “criminal offences under its domestic law.”
A
s for the authors’ theories on circumventing this dilemma of international law, you’ll have to pick up the book and see for yourself. Their analysis is thorough, but not entirely optimistic when it comes to a speedy reversal of global prohibition. Still, this explains why no nation has entirely legalized Cannabis for recreational use and maintains at least some level of prohibition. Full legalization could lead to unwanted headaches in the political dance that is the United Nations and acts as a counterweight to the economic incentives that an end to prohibition could provide. But that doesn’t mean some countries aren’t still considering it.
Home of the brave
The current frontrunner, due to recent developments, is the South American country of Uruguay. On the last night of July, Uruguay’s Congress passed legislation for the state to regulate the cultivation and sale of Cannabis. The law still needs to get through the Senate later this year, but is anticipated to pass with the majority held by the nation’s leftist party. While Cannabis in Uruguay
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the political dance that is the United Nations... is decriminalized to the point of technical legalization, making it official would have global ramifications. The largest nations in North America are currently undergoing a socio-cultural shift in their views towards Cannabis legalization, each for their own specific reasons. Canada, whose British Columbian growers are renowned for their skills in cultivation, has seen an uptick in public calls for policy reform. Just last May, the Canadian Drug Policy Coalition released a study calling for the legalization of all drugs entitled, “Getting to Tomorrow: A Report on Canadian Drug Policy.” The report received quite a bit of attention and rekindled the social dialogue on legalization of Cannabis. An in-depth analysis of this dialogue can be found in the Canadian magazine, Maclean’s June 10, 2013 article, “Why it’s time to legalize marijuana.” They found that public opinion is now at 57 percent in favor of Cannabis legalization. The main point of contention in Canadian politics is in Cannabis use among children, which is disproportionately high at 28 percent of use in ages 11, 13, and 15. Advocates of legalization point to much lower percentages in decriminalized countries like the Netherlands. However, the political fallout for the ruling Conservative Party, who has made Cannabis arrests a party platform, will be reluctant to endorse legalization without very strong public outcry. Mexico has also been considering full legalization. Former Mexican President Vicente Fox has been publicly advocating it this year. Mexico’s primary political reasons
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are obviously tied to its deadly drug war with the cartels. On top of this, it could create a new and legitimate industry to create job opportunities not associated with illegal drugs. Still, only 21 percent of Mexicans favor legalization, even in the midst of the drug war. Lastly, there is the United States, which would have the greatest global impact on legitimizing Cannabis legalization. Public support is in favor of it — 52 percent according to a Pew Poll done last March. Two states have already done it. We’ve already shown our complete disregard for international law in other arenas. All that’s really needed is the government to lift the federal law against Cannabis and leave it up to the states to get the ball rolling. So, the race is on! Still, everyone is going to need to consider the ramifications that will follow their defiance to international law in the eyes of the United Nations. Uruguay is likely to be the glorious victor in this bold race with their anticipated Senate approval later this year. Even if developments go awry, the giants of North America aren’t far behind. If Uruguay does win the race, given the shifting attitudes in favor of legalization sweeping the hemisphere, we can all share in the celebrations. A successful end to prohibition in Uruguay or anywhere else would most likely be the catalyst for the rest of the Americas to join in. The political and economic winds are right for this to happen; the first domino just needs a tap. Look south, friends, because Uruguay just may tap it. S
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By Joe Martin Illustration by Emily Cain
Legal Cannabis is here to stay, yet so many questions remain. One thing, however, seems certain: with the Cannabis genie now out of the bottle and recreational use legal in Colorado and Washington, increasing numbers of states will change their laws to allow for its use and the revenue it generates. In all likelihood, the individual state laws will vary, and a Cannabis business that’s legal in one state might not be in another. While the crystal ball providing glimpses into our country’s Cannabis future is still a bit hazy, several enterprises are emerging as key revenue sources for this industry. We must remember that the profits and legality of many potential Cannabis businesses are vulnerable to individual state laws and final drafts of state guidelines, but at this time in Washington and Colorado there are some clear indications of the future’s final policies. The following is a top 10 list of what I predict will
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be the most lucrative markets, although much of this list remains largely speculation. 1) Cannabis retailers This is the most obvious revenue source since it’s where mainstream customers will shop for Cannabis and Cannabis-related products. While the exact business model is still a bit uncertain — and bound to vary by state — one fact remains clear: people will need a place to buy recreational Cannabis. 2) Cannabis growers and/or processors Even in areas where citizens can legally grow their own herb, there will be a strong need for growers to supply retail stores. The vast majority of Cannabis consumers will choose to buy the final product rather than grow it themselves — if state law even allows for them to grow it. From drafts of state regulation proposals and guidelines, it seems clear that
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recreational Cannabis will have two or three separate steps from seed to final sale. These steps will include cannabusinesses that will most likely work independently of each other and require separate licensing, including Cannabis producer, Cannabis processor and Cannabis retailer — or Cannabis producer and Cannabis retailer, at the very least. Growing operations will provide the newest, most marketable, and most interesting strains available and be the source for all-new strains. On the processing end, packaging for retail Cannabis will require specific labeling. Final drafts of seed-to-sale guidelines will likely require specific curing methods, as well as standardized testing methods for THC potency and screens for mold or fungus on the finished product. The future will provide the answer to whether or not these behind-the-scenes operations producing recreational Cannabis can be combined into one cannabusiness or must remain separate entities. 3) Seed banks Growing Cannabis is fun and easy! While it may take a little time for an average person to research and gain knowledge before experimenting and refining basic horticulture skills, growing potent and tasty Cannabis strains is not terribly difficult. Seed banks will be the source for the genetics growers covet and strive to obtain. These seed banks are already booming in Europe. Just as discriminating people who love fresh vegetables choose to grow their own heirloom strains that aren’t available in stores, the same holds true for Cannabis purests and connoisseurs. Just like a wide range of vegetable and flower seeds are available to shoppers at any Lowe’s, Home Depot, or horticulture center, seed banks
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will be the source for pre-packaged, legal Cannabis seeds. 4) Medical Cannabis dispensaries Since many people use Cannabis for medicinal purposes, the medical dispensary market will remain. The focus and purposes of these operations will always be to provide important medicine to those who need it. There’s still a segment of the Cannabis community that doesn’t fit the recreational Cannabis profile. 5) Hemp products Hemp is truly a miraculous resource already — and its full potential remains largely untapped. New uses for hemp receive attention from the media on a regular basis. In many ways, hemp is a superior fiber to cotton and synthetics. Its uses rival or surpass those of cotton. Colorful and attractive hemp clothing is widely available, including very durable items like belts. Hemp purses and belts are made to be tough enough to hold up over long periods of time. The range of hemp clothing items is impressive and diverse. No doubt the range of hemp products and uses will only increase in the future as new legalization laws continue to pass. Check back next month to learn more! The October edition of Sativa Magazine will explore the myriad of hemp possibilities. 6) Edibles market The edibles market is already in full swing and has been for some time. Many people prefer to ingest their Cannabis rather than smoke it. Everyone has heard of “pot brownies” or “ganja butter,” but the range of edibles these days breaks free of those old favorites and encompasses many delicious and potent foods. This industry is ripe for spin-off items and
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services like cooking utensils, cookbooks, and cooking classes. To some, the edibles market will provide a way to enjoy Cannabis without the social stigma of being a smoker. 7) Cannabis clubs Clubs for Cannabis users have already opened, although these early clubs have been largely experimental, with one of the first clubs in Colorado facing closure because of concerns on the part of the landlord. Another of the early Colorado clubs was Club 64, a members-only group named in honor of the state’s amendment. The legality and method of operation with Cannabis clubs is bound to vary as more states get on the Cannabis bandwagon. Some clubs have been more of a “bring your own” pot party than an actual place to purchase and consume Cannabis. Time and the will of the masses will decide the future of this type of business on an individual state level. 8) Cannabis tourism Legal Cannabis states can expect a spike in tourism, especially after retail establishments and seed banks start up. This type of business already exists in Colorado, where My 420 Tours has put together vacation packages for people who want a Cannabis theme during their visit to the Rocky Mountain state. During World Cannabis Week in Denver last April, the company sold all of its 160 vacation packages for the April 20 weekend alone. At that time, 420’s vacations ranged from $550–$850 per person. Since then, Colorado lawmakers have opened the door even wider for Cannabis tourism by the decision to allow out-of-state visitors to purchase and use Cannabis during their stays. Tourists to the state will receive ample warning that taking Cannabis home with them is illegal but will have the opportunity to purchase as much
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as one-quarter ounce of recreational Cannabis from retailers during their stay. State residents will be able to purchase a full ounce. Vacation packages will vary and cater to a range of visitors, with Cannabis-friendly lodging being the norm. 9) Cannabis resource shops In addition to Cannabis retailers, there will be a need for retail outlets that sell horticulture products relating to the cultivation of our favorite plant. Besides obvious growing necessities like grow lights, organic soils and fertilizers, pots, and pH-test kits, a range of other items for Cannabis enthusiasts like books, videos, shirts, posters, and other lifestyle items will be for sale. This will also be a likely location to sign up for growing and cooking classes. 10) Cannabis delivery services This type of service has been operating since medical Cannabis first became legal. It will now increase on a grander scale, with a much wider range of customers and ordering options. Soon, people who enjoy Cannabis need not leave the comfort of their homes to enjoy this product. Placing orders by both phone and Internet will be options for any individual who desires a delivery. What remains to be seen is whether delivery vehicles will conspicuously advertise the services of the delivery service — like a pizza delivery service — or if customers will demand more subtle types of delivery to ensure privacy within their neighborhoods. The range of opportunities emerging for Cannabis entrepreneurs these days is truly exciting. For those with an aggressive business plan and strong work ethic, the profit potential is enormous. S
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
RAIDS: A MESSAGE? On July 25, 2013, the Drug Enforcement Agency (DEA) raided several medical marijuana dispensaries operating in the state of Washington. These raids occurred despite the legalization of marijuana usage by the state and just two months prior to the opening of the 30-day application period for commercial Cannabis operations. These raids have raised a variety of questions, not the least of which is: What message, if any, was the federal government conveying by raiding ostensibly legal marijuana dispensaries? The selected dispensaries have been the subject of a federal investigation since 2011. A 2011 Application for Search Warrant appeared to focus on whether or not the dispensaries were engaging in “commercial sales.” The specific objective of the raids appears to be one of collecting evidence. None of the state agencies were inclined to comment or shed any light on the DEA raids. The ACLU’s general position is that the raids changed nothing and may have been related to the earlier investigation. However you interpret the actions by the DEA, the timing was most likely intentional and designed to send a cautionary message to aspiring Cannabis entrepreneurs. The message, however, is anything but clear. You can take away one of two messages from the DEA based on earlier statements
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By Dan Bariault made by Obama’s current drug czar, Gil Kerlikowske. On February 11, 2013 during an interview with the Canadian news magazine Maclean’s, Kerlikowske stated that the federal government would ignore legalization and go after both states of Washington and Colorado. “You’ll continue to see enforcement against distributors and large-scale growers as the Justice Department has outlined,” said the Director of the Office of National Drug Control Policy, who is known to be personally opposed to legalization. Also, the Obama Administration has engaged in raids of Cannabis dispensaries at four times the pace as the Bush Administration.
Message 1: If you grow, process or sell Cannabis, you and your assets are at risk; Cannabis is still classified by the federal government as a Schedule I controlled substance.
Message 2: If you are a “small” operator – and remember, no one knows how the federal authorities define “small” – the DEA may leave you alone as they have bigger fish to fry — namely, distributors and large-scale growers. The question is, should you throw in the towel and give up your aspiration of becoming the
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Bill Gates of Cannabis? Perhaps not, but you might consider a “go-slow” approach and limit the capital invested in the business.
What would I advise an aspiring Cannabis entrepreneur to do if they were my client? • Develop a realistic business plan that ramps up capital investment over time. Start small, go slow, and respect the power of the federal government. • Regardless of whether you are the owner of a medical dispensary or a “commercial” operator, follow the letter and intent of the state laws strictly. Don’t make assumptions. If you have a question, ask your attorney or contact the state entities handling oversight directly for feedback, such as the Liquor Control Board in Washington State, preferably in writing. Washington’s approach consists of deep taxing and extensive regulations designed to protect the public interest. • Be very aware of political winds and adjust your planning accordingly. • Whether raising capital from your Uncle George, your co-worker, or an accredited investor, give them a Private Placement Memorandum which essentially lays out every risk associated with the business. This may not help with the federal government, but it reduces your exposure with investors. • Don’t bend the rules. Don’t allow your political persuasion to cloud your reasoning. Just because you feel Cannabis should be legal does not mean you have a solid legal basis for your actions. • Ask yourself how much can you afford
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to lose? Although a financial checkup is advisable for any new business operator, it is particularly important when you face not only the run-of-the-mill challenges of a new business, but also a very high level of legal uncertainty that can spell calamity under the right conditions. • Build a strong business team with trusted advisors that will provide meaningful and critical input.
What would I advise an aspiring Cannabis entrepreneur not to do if they were my client? • Don’t tell the federal government you want to become the King of Cannabis. • Don’t associate yourself or your proposed venture with the former head of state of any nation that is considered a major producer of illegal drugs. • Don’t advertise on billboards on Interstate 5. • Don’t associate your product brand with products marketed by drug cartels. • Don’t invest your life’s savings in the venture. • Don’t think you are an expert in the Cannabis operations because of your illegal basement grow. The rules proposed by state entities must be followed and there are a myriad of issues related to entity structure and operating agreements, investors and securities law, banking, insurance, cash management, quality-control, packaging, labeling, product-control, safety, security, reporting, taxes, testing, sanitation, and environmental considerations, to name a few.
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
By Paul Josephs Illustration by Josh Clappe
Can mass production and connoisseur appreciation overlap? This is a timely question to consider as legalization continues to spread across the country. To gain a perspective on this, let’s look at two extremes of Cannabis cultivation and see where they might find common ground in the quality department.
Cannabis maximus Legalization of Cannabis means that there will be big players coming onto the scene making bold moves that will really pay off as a large market emerges from the shadows of illegality into the mainstream. One certain outcome will be increased streamlining and massive scalingup of crop production. As serene a plant as Cannabis may be, and giving due respect to its amazing attributes and usefulness, growing it on the terms of a large business means profit margins and efficiency are the top priority. The really large grow facilities are more akin to Cannabis factories than idyllic nurseries.
Cannabis minimus Small-scale growers that have elevated their craft to an art form will enjoy a much broader
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customer base in the legal retail market that can appreciate their painstaking efforts. Craft growers are able take a much more hands-on approach to their plants, and every step can be taken with care when it is the perfect time to do so. This approach is what most people would expect a producer of connoisseur-quality Cannabis to adhere to.
Just what is a connoisseur, anyway? Great question. The Free Merriam-Webster Dictionary offers the definition, “One who enjoys with discrimination and appreciation of subtleties.” A Cannabis connoisseur will be able to perceive subtle distinctions in all aspects of the finished product, and make evaluations based on considerable acquired knowledge and experience. Aficionados appreciate how Cannabis flowers appeal to all of the senses; they will be hand-manicured and look amazing, feel perfectly cured, smell tantalizing and offer a clean, smooth, and savory smoke that has a memorable cerebral effect. Further distinctions that may excite the consumer would include cultivation aspects such as whether it’s grown outside or not, the type of nutrients used,
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
whether it’s produced from seed or clone and the strain type. Post-harvest considerations would focus on the manicuring techniques and the curing process and time.
What is mass production? A snap poll of Sativa Magazine team members revealed the perception that the attention and care to reliably grow and cure connoisseur-quality Cannabis are achievable with hundreds of plants, but probably not thousands. Efficient large-scale cultivation of thousands of plants involves a high degree of conformity — the same strain, height, light and nutrient program. Scheduling must be precise and rigidly adhered to. The harvest will occur all at once, and the manicuring and curing process will have to be executed in bulk quantity in a limited period of time.
Quality is just the beginning Growing teams have already proven time and again that commendably high-quality Cannabis can be produced in large quantities. In fact, it is increasingly expected. The quality of the genetics available coupled with the consistent application of sound and proven growing technique ensures that much domestically grown Cannabis is of a high standard of quality. When one examines the qualifiers that distinguish connoisseur-quality from the merely very good in other consumables like coffee, tobacco and wine, the terms “handselected” and “choice” appear frequently. Small grower’s naturally hand-select flowers at their peak, manicure them by hand and usually do a great job of curing them attentively. Those connoisseur-quality flowers that place and win in various Cannabis cups may well have originated from a large run in a growing facility, but you can be assured they
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were most likely not randomly grabbed from a big plastic bin for the entry. Someone very knowledgeable hand-picked them, probably at harvest time, and diverted them for separate care and handling.
Diversionary tactics The above scenario demonstrates how even the biggest growers could still produce their regular product efficiently and also be able to offer limited quantities of their “select” product aimed at the connoisseur market. By having a diversion stream in place that allows the senior growers to carefully evaluate the plants, choosing the flowering branches that are at their peak, ensuring that they are gently manicured and closely monitored during the curing process, they can produce the highestquality product, albeit in limited quantities. They could possibly do this with much of the crop, but the overhead costs would make the product much more expensive to produce. Besides the extra cost, there is the elite aspect that must be respected for the Cannabis to be connoisseur-quality. Good, bad, right or wrong — large quantities run counter to a connoisseur’s sensibility.
Taste-test challenge Because of the high quality that can be mass produced, it’s quite realistic to think that a blind taste test might not always favor the small grower’s product. Such a test would usually only compare taste and aroma. A large part of what makes for a connoisseur experience is the combination of all the aspects of the product being appreciated before, during and after the consumption. Just like the pour of a high-quality craft beer is part of the experience, so is the enjoyment of looking at, handling and preparing the flowers for smoking. Blind taste tests do not usually involve this level of
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Businesses have a good sense of the numbers of potential customers there will be, but not as a clear an understanding of how many consumers will pay increasingly more for higher quality levels.
intimate hands-on experience. If they do, and there is no definitive clear winner, there will still be other factors in play that allow for the connoisseur card to be dealt.
Intangibles Some aspects that determine whether a connoisseur will appreciate one strain or brand over another are not easily defined. Factors like the mystique surrounding the region or even the company, breeder or grower that produced the plants can have a large effect on consumer perception. An appreciative nod from a respected authority can carry much weight. Branding absolutely can trump quality, so it is far too early in the game to determine exactly what Cannabis will be considered connoisseur. The connoisseur segment will fragment naturally as people gravitate toward various niche markets. There will be genetic purists who are partial to only Cannabis sativa or indica strains. Some enjoyers will prefer organic methods and materials, while others may shun indoor-grown flowers in favor of outdoorgrown ones. Some will pursue the very latest new strain, and others will look diligently for a rare favorite strain of times past. Innovative growers may experiment with unusual mineral
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additives in their soils to coax out and enhance the distinctive flavor of their signature strain, or experiment with anaerobic fermentation cures like those used to make Malawi cobs, flowers that are wrapped tightly in corn husks and buried for months. Remember, it’s an elusive combination of subtleties that make the difference between high-grade Cannabis and that which offers a product customers are willing to spend quite a bit extra for.
Time will tell It will be fascinating to observe how the market pie of legal Cannabis will be sliced up. Businesses have a good sense of the numbers of potential customers there will be, but not as a clear an understanding of how many consumers will pay increasingly more for higher quality levels. Market researchers will be well served to investigate this question now. Growers will be challenged to gauge the desires of their customers when planning which strains to grow and when. Is it the grower’s or the consumer’s tastes that will drive production? Will those tastes change seasonally? Can some strains achieve iconic status and endure the test of time? We will soon have the answers to these questions. In the meanwhile, get ready for Jiffy Doob. S
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
State
Stances
Cannabis egalization
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“Business, more than any other occupation, is a continual dealing with the future; it is a continual calculation, an instinctive exercise in foresight.” – Henry R. Luce The only way one can accurately calculate the future is to investigate the past. For ganjapreneurs, this rule is essential for expanding your commerce or seeking a new location for a potential dispensary, farm or other form of cannabusiness. One must look at the bills being passed in each state in order to grasp what may happen in the future. A common trend takes place. First, the decriminalization of possession, followed by a medical Cannabis act. After this, industrial bills are beginning to sprout up across the nation. Finally, with two states taking the lead,
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legalizing recreational Cannabis is the final step. The Cannabis movement is spreading fast. When federal prohibition falls, it will almost certainly take the form of a bill: the Respect State Marijuana Laws Act of 2013. This bill does not allow for Cannabis use, but rather amends the Controlled Substances Act, and calls for respecting the laws of individual states. For ganjapreneurs, this means that states, not the feds, will determine where exactly your cannabusiness can potentially start or spread. We’ve collected this wealth of information from government entities to inform you — the ganjapreneur, the future of the United States’ economy — where each state stands in regards to Cannabis legalization.
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States that have legalized recreational Cannabis Colorado: House Bills 13-1317 and 13-1318. Medical Cannabis was legalized in 2000, when citizens voted on Amendment 20 — the Medical Use of Marijuana Act. Washington: Initiative 502. Medical Cannabis was legalized in 1998 through Initiative 692 — also called the Medical Use of Marijuana Act.
States that have legalized medical Cannabis: the details Alaska: Residents may possess under four ounces of Cannabis on their property due to the Irwin Ravin v. State of Alaska case that took place in 1975. Currently, Alaska must obtain 30,169 signatures by December 2013 for the initiative, “An Act to tax and regulate the production, sale, and use of marijuana,” to appear on the August 2014 voter’s ballot. Arizona: Residents carrying a patient card may possess up to 2.5 ounces under the Arizona Medical Marijuana Act of 2010. Currently, Arizona must obtain 259,213 signatures by July 2014 for their initiative legalizing recreational Cannabis to appear on the November 2014 ballot. California: Residents carrying a patient card may possess up to eight ounces according to the California Health and Safety Code. California’s Marijuana Control, Regulation and Education Act, was not passed in November of 2010, however, the California Cannabis Hemp Initiative was filed in August of this year and signature gathering begins in October, to be included on the November 2014 ballot. Connecticut: Residents made medical Cannabis legal through House Bill 5389 in April 2012. There are no plans toward
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legalizing recreational Cannabis but a petition has been started to gather signatures for an initiative to be considered at change.org. Delaware: Medical Cannabis was legalized in 2011 with the Delaware Medical Marijuana Act but laws regarding the plant’s regulations and control have not been decided upon. Hawaii: Hawaii legalized medical Cannabis in June 2000 with Senate Bill 862 HD1. Last June, the governor signed House Bill 668 and Senate Bill 642, transferring control over medical Cannabis from the Department of Public Safety to the Department of Public Health. The later bill increased the amount of Cannabis a patient may carry from three to four ounces. Currently, the Personal Use of Marijuana Act is still in the process of legislation. Illinois: Medical Cannabis was legalized on the first of last month when the governor signed The Compassionate Use of Medical Cannabis Pilot Program Act. This law will only be effective for four years but can be renewed and/or revised once the time is up. The regulations are strict, but patients will have their opportunity to acquire their medication. Maine: The Maine Medical Marijuana Act of 1998 has recently been updated to increase the amount of Cannabis one may carry to 2.5 ounces along with other changes. State Representative Diane Russell introduced a bill that would legalize recreational use of Cannabis. However, Maine’s House voted 71–67 to kill the bill. Massachusetts: In 2009, residents voted to decriminalize possession and to allow medical Cannabis in 2012 with the Massachusetts Medical Marijuana Initiative. Currently the Cannabis Regulation and Taxation Act
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
(House Bill 1632) is being considered for the recreational and industrial use of Cannabis. Michigan: The Michigan Medical Marijuana Act passed in 2008. The Medical Marijuana Provisioning Center Regulation Act (House Bill 4271) was presented in February allowing more liberal regulations to be applied to medical Cannabis dispensaries. Unfortunately Michigan’s attempt at legalizing recreational and industrial Cannabis failed as the petition did not meet the amount of signatures by the July 2012 deadline. Montana: Montana’s citizens voted for legalized medical Cannabis in 2004 with the Montana Medical Marijuana Act. Regrettably, it was repealed and replaced with Senate Bill 423 in 2011, which introduced harsher laws concerning Cannabis — a move vetoed by the governor. The new laws which make obtaining Cannabis more complex for patients stand despite voters’ opinions. Nevada: Medical Cannabis was legalized in 2000 through the Nevada Question 9 Medical Marijuana Initiative. Just last June Senate Bill 374 was signed by the governor, which authorized medical Cannabis dispensaries to open for business. Now patients in this state will finally have safe locations to purchase their medication. New Hampshire: Recently legalized in July through House Bill 573. Patients may only purchase their medical Cannabis from a nonprofit Cannabis dispensary. Strict regulations ensue, including a law that states patients may not grow their own plants. New Jersey: January of 2010, the New Jersey
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legalized hemp recreational use medical use considering medical
Compassionate Medical Marijuana Act was signed. This is another state where patients are not allowed to grow their own medicine. New Mexico: This state legalized the medical use of Cannabis in July 2007 with the Lynn and Erin Compassion Use Act. They are one of the few states that refer to the herb as Cannabis instead of Marijuana.
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in 2005, but a veto by the governor postponed its legislation until 2006, when the veto was overridden and the Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act came to pass. Vermont: In 2004, this state joined others in providing medical Cannabis to its residents through House Bill 645 and Senate Bill 76. Recently in June, House Bill 200 was signed into law which decriminalized small amounts of Cannabis, making it a civil fine rather than a criminal penalty. Currently, House Bill 499, which would legalize recreational and industrial use of Cannabis, is still in the process of legislation.
States that have legalized industrial hemp Colorado: Allows possessing and growing industrial hemp. Senate Bill 241. Kentucky: Research allowed involving industrial hemp products. Senate Bill 50. Maine: One may cultivate hemp with a stateissued license. LD 525.
Oregon: The Oregon Medical Marijuana Act went into effect in 1998, allowing the possession and cultivation of Cannabis with a doctor’s recommendation. Last year, the Oregon Cannabis Tax Act which would have allowed recreational Cannabis and hemp agriculture did not pull through, but Paul Stanford, a legalization activist, has filed two initiative petitions that would both legalize and regulate its uses. Rhode Island: The House and Senate votes were in favor of legalizing medical Cannabis
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Montana: Hemp with under 0.3 percent THC may be cultivated. License required. Senate Bill 261. North Dakota: Hemp with under 0.3 percent THC may be cultivated. License required. House Bill 1549. Oregon: Industrial hemp is no longer classified as a controlled substance. License required for production. Senate Bill 676. Vermont: Hemp with under 0.3 percent THC may be cultivated. License required. Senate Bill 157 was recently signed in June which slightly liberates Vermont’s hemp-production laws.
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
West Virginia: Hemp with under 0.1 percent THC may be cultivated. License required. Currently, House Bill 3011 is being considered that will be, as the bill states, “Removing the provision that requires an applicant to meet federal requirements concerning the production, distribution and sale of industrial hemp prior to being licensed...”
States considering medical Cannabis legalization Minnesota: House Bill 1818 introduced in May, to be voted on in 2014.
Representative Joseph Souki in January. Massachusetts: The Cannabis Regulation and Taxation Act is currently going under legislation. Oregon: The Oregon Cannabis Tax Act has hopes of being voted on come 2014 if Paul Stanford’s petitions collect enough signatures. Rhode Island: The Marijuana Regulation, Control, and Taxation Act may be appearing on the 2014 ballots.
New York: Senate Bill 1682, to be voted on in 2014, also sets laws for medical cultivation and research.
Vermont: House Bill 499 is undergoing legislation which would tax and regulate recreational Cannabis.
Ohio: House Bill 153 has been introduced by Representative Hagan, which will be considered for the 2014 ballots. Residents will be able to vote for its legalization.
Given the fact that Washington and Colorado have not finalized Cannabis recreational use laws, the amount of states following in their footsteps is already substantial enough to see that a change in the US economy will quickly be underway. With 20 states having legalized its medical use, four states considering medical use, eight states legalizing industrial use, and seven states considering recreational use — the opportunities are quickly opening up for ganjapreneurs to take a slice of Cannabis culture pie. It is time to capitalize on this rapidly growing market, taking advantage of its birth in your state and raising it into a business you can call your own. Read the acts. Read the bills. Become educated on your state’s stance and vote for the representatives who support a green economy! Once your state benefits from the many uses of Cannabis and hemp, you’ll be happy Prohibition finally came to an end. S
Pennsylvania: In April, Senate Bill 528, known as the Regulate Marijuana Act, would allow not only medical but recreational and industrial use of Cannabis and hemp. It is unclear how much support this bill will receive. However, there are high hopes that medical Cannabis will prevail with House Bill 1181.
States considering recreational Cannabis consumption Alaska: Collecting signatures for “An Act to tax and regulate the production, sale, and use of marijuana.” California: Collecting signatures for California Cannabis Hemp Initiative. Hawaii: The Personal Use of Marijuana Act was introduced into legislation by
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Green Candy Press
If you’re going to eat, you might as well be hungry
there is no Z). Each strain includes photo, bud description, taste and smell. Cannabis connoisseur Matt Mernagh has compiled this ganga guide after personally trying each strain, detailing his experienced high with all 150!
Rating: 5 nuggs
We applaud their publishers, Green Candy Press, for their commitment to publishing books that are targeted to a quickly-expanding audience of Cannabis consumers and educated ganjapreneurs.
Green Candy Press recently sent Sativa Magazine two of their recent releases: Baked Italian: Over 50 Mediterranean Marijuana Meals by Yzabetta Sativa and The Marijuana Smoker’s Guidebook: The Easy Way to Identify and Enjoy Marijuana Strains, by Matt Mernagh. Baked Italian: Over 50 Mediterranean Marijuana Meals is a must-have cookbook for those who like to eat their way baked. This book comes complete with detailed instructions on how to make six different extractions used throughout 48 additional mouth-watering recipes. All recipes include photo, step-by-step instructions and yields. This book is filled with incredible medibles! What to try first? Cannabis and Italian — what’s not to love? Baked Italian is an ideal way to medicate; educated ganjapreneurs know that the effects of medibles are more enhanced and longer-lasting than that of simply smoking Cannabis. For the cost-conscience Cannabis consumer, a little goes a long way. Marijuana Smoker’s Guidebook: The easy way to identify and enjoy marijuana strains is a full 214 pages of the top 150 mostly Sativa strains available from A through Y (because
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Cannabis consumers love variety. What better way than The Marijuana Smoker’s Guidebook to help aid in making the next selection of what to smoke, grow or keep in stock?
Visit the website of Green Candy Press for product availability and cost. Both titles can be purchased at Barnes & Noble online. Baked Italian will run you $13.56 for the paperback and $9.90 for the Nook book and the Marijuana Smoker’s Guidebook is $11.02 paperback or $9.75 Nook book. S – Hippy KK Green Candy Press: http://www. greencandypress.com/
Marijuana Smoker’s Guidebook via BN.com: http://www.barnesandnoble.com/s/marijuanasmoker-s-guidebook/marijuana-smoker-s-guid ebook?store=allproducts&keyword=marijuana +smoker%27s+guidebook Baked Italian via BN.com: http://www. barnesandnoble.com/s/baked-italian-over-50mediterranean-marijuana-meals?store=allprod ucts&keyword=baked+italian+over+50+medit erranean+marijuana+meals
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To Patent, or Not to Patent?
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By R. Robinson Illustration by Mekinsey Molinaro Ever since American voters chose to legalize medical Cannabis the question of patenting the herb has been on every new ganjapreneur’s mind. Despite hundreds, if not thousands, of attempts to patent everything from the ubiquitous “Blueberry” strain to the word “marijuana” itself, the Cannabis plant remains comfortably entrenched in the public domain. However, novel technologies developed over the past couple of decades, as well the flower’s cash-crop potential, have ignited patent fears in the Cannabis cultivation community. The fear is that one day, sooner rather than later, the giants of agricultural industry may lay exclusive claims to Cannabis varieties. And these fears may not be entirely unfounded.
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Plant patents in the United States Despite the boogeyman stories surrounding companies like Monsanto and AgBio, plant patents aren’t anything new. They have been around for decades, long before terminator seeds and Roundup. In 1930, Thomas Edison lobbied for the Plant Patent Act (PPA) arguing that the recent rediscovery of Mendelian genetics had made inventors out of plant breeders. The PPA allowed for growers to hold exclusive distribution rights for asexual, “manmade” plants. Fast forward to 1970 when Congress expanded plant patenting rights with the Plant Variety Protection Act (PVPA), which included sexually reproducing plants among the
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repertoire of privatized life forms. PVPA patents did not carry as much legal weight as PPA patents, but the ultimate consequence of this law was that seeds also fell under the umbrella of patentable material. Just 10 years after the PVP Act, the Supreme Court ruled in favor of General Electric during the landmark Diamond v. Chakbrabarty case. This ruling made it possible to patent any human-made construct: that meant genetically modified organisms (GMOs) and artificially designed genes could be commercial property. This brings us to the dilemma we face today.
The state of things As of this article, no patented Cannabis sativa strains exist. Three years ago, the US Patent and Trademark Office stated it was swarmed with a deluge of ridiculous requests after mistakenly introducing Cannabis products as a trademark category. However, any attempts to trademark “White Widow,” “Purple Haze,” or “Maui Wowie” were shot down en masse. Only Cannabis-derived products such as sodas or extracts received trademarks or patents. Brand names may be the easiest route for exclusive distribution of Cannabis products, but rest assured, no one company will own Northern Lights.
names may one day become associated with the product itself, much in the same many people refer to any tissue as a “Kleenex” or any caramel soda as a “Coke.” Trademarks work in product branding, but Diamond v. Chakrabarty paired with federal legalization means we will see patented Cannabis in the near future. This is possible if the plant’s genes are modified or tampered with in some way. Genes can be altered through an entire array of ingenious techniques. Radiation, chemical baths and transgenic methods moving genes from one species into another - can qualify a DNA sequence to become patentable. Although the plant itself is not privatized, the gene sequence is, and any plant bearing that gene, therefore, bears the patent. continued on page 78//
Interested in learning more? Check out these references:
The patent file for the federal government’s cannabinoid “invention”: http://www.google.com/ patents?hl=en&lr=&vid=USPAT6630507&id=0 pcNAAAAEBAJ&oi=fnd&dq=Cannabinoids+as +antioxidants+and+neuroprotectants&printsec =abstract
For example, take the clementine. This is a variety of mandarin orange that commonly gets sold in supermarkets under the brand name “Cuties.” No one is allowed to patent the clementine orange, but Cuties’ clementines are protected by trademark.
The Plant Patent Act of 1930: A Sociological History of its Creation by Cary Fowler (2000) in the Journal of Patent and Trademark Office Society.
A similar scenario could be seen in the near future. Any licensed dispensary could sell Bleu Cheese over the counter, but heavyweight grow operations may market their own version of Bleu Cheese with a brand attached to it. Brand
Why patents won’t work for common Cannabis strains: http://www.freakonomics.com/2012/08/22/can-marijuana-%E2%80%9Cbrands%E2%80%9D-belegally-protected-against-copying/
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The evolving landscape of plant varietal rights in the United States: 1930–2008 by Philip Pardey, et al. (2013) in Nature Biotechnology.
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
World is watching //from page 19
to give opponents. Creating a professional image is a priority, as well as avoiding common pitfalls, like having half-naked spokespersons slinging products which perpetuate stoner stereotypes. Ensuring that the public image of the Cannabis industry is one of responsibility is vital. Further, ganjapreneurs can also support charities, community organizations and educational groups to give back to the community at large.
The green rush has the potential to create more opportunity than we will ever see again. But with great opportunity comes great responsibility. The relatively small group of pioneering ganjapreneurs are going to be spokesman to the entire world. If done correctly, we’ll propel the movement forward. On the other hand, as successful ganjapreneurs and activist John Davis said, “If we do it wrong, we could put the movement back 40 years.” S
Cost of prohibition //from page 43
nearly always part of the lethal cocktail. The list goes on. Prohibition has not worked. The United States is still the largest consumer of the world’s drugs, only now we also have the world’s largest incarceration rate. Most estimates floating around these days come from a 2010 Cato Institute study by Jeffrey A. Miron and Katherine Waldock. They found that full legalization of all drugs would save the nation upwards of $41.7 billion on enforcement and bring in another $46.7 in annual tax revenue. If only Cannabis were legalized, which the majority of Americans now support, they
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project that it would save $8.7 billion on enforcement and rake in $8.7 billion in taxes. They base their potential tax revenue on current tax rate averages for alcohol and tobacco. As the state of Washington has shown, tax rates for Cannabis can be much higher than those for booze and ciggies without mortally wounding the new market; a new market with massive potential and act as an economic catalyst for its state. The conventional wisdom of drug policy today is to mitigate the risks of drug abuse, but when the policy ignores research, drains government resources, and brands otherwise law-abiding citizens as criminals, the policy needs to be removed. S
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The Legalization Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Raids //from page 55
• Don’t operate with the appearance of a “head” shop. • Don’t use bikini-clad young women to sell your product. This author believes that the federal government will eventually legalize Cannabis and it will be universally accepted — or tolerated — much the same as alcohol. However, Cannabis has a long and checkered past, and, like gun control, there are strong opinions on both sides of the regulatory or legalization argument. I believe acceptance will take time. How much time? Perhaps sooner than me winning the Powerball lottery but longer than Seattle getting a NBA team. Have
hope, since Sanjay Gupta of CNN now says he supports some form of legalization. Bottom line — be patient, go slow, follow the rules, and recognize that Cannabis is still illegal under federal law. Disclaimer – This article is not intended as legal advice or establishing an attorney/client relationship. If considering applying for a Cannabis license, get the advice of an experience attorney and accountant to assist you. Dan Bariault practices law in Seattle, Wash. You may contact him at: dan@businessadvocatelaw. com or go to either of his websites, www.balfirm. com and www.businessadvocatelaw.com. S
Patent //from page 71
The possibilities for modifying Cannabis are endless. Scientists could circumvent the plant’s flowering requirements, skipping the day / night steps and going straight for a quick and bountiful harvest. Genetically modified Cannabis could be designed to produce more THC than conventional breeding can. THC could even be removed from the plant altogether, which would be highly prized by patients who don’t enjoy getting high. Resistances to drought, salts, frost and pests could make the hardy herb even hardier, allowing grow operations to work around the clock in nearly any environment. But as of right now these possibilities lay in the realms of
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science fiction and speculative investments. Although no biotech companies have made large-scale pot farms with specially patented seedlings, there are patents for marijuanaderived medicines. Ironically, our federal government, which keeps marijuana at Schedule I under the pretense that Cannabis has no medicinal value, owns one of these patents. The patent number 6,630,507 was issued in 2003 to the United States of America through the Department of Human Health and Services. It’s a patent for cannabinoid mixtures, mixtures that include THC and cannabidiol to protect brain cells. S
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Need for seeds //from page 24
Little seeds, big question The question of who will have access to seeds and therefore can breed should be a big deal for the Cannabis legalization movement. Now is the time for ensuring that legislation includes provisions for personal growing. If the ability to grow and breed our own varieties is taken away, it will force us to be consumers. Many people do not care to grow their own vegetables,
herbs, and medicinal plants, but that should be an option available to anyone, including the growing of Cannabis by adults. Keeping the Cannabis gene pool as wide and deep as possible ensures a healthy increase in genetic variability and lessens the impact of monoculture Cannabis crops succumbing to pathogens. Having unique and regionally specific strains available will satisfy the most avid connoisseur,
and that is best achieved with unrestricted breeding. I don’t believe retail businesses need to fear the impact of home growing and breeding on profits. Whatever the percentage of personal growers ends up being, those people will still require and pay for growing equipment, nutrients, and education; all of which businesses will gladly provide, along with the all-important seeds. S
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