DO YOUR PART TO GROW THE CULTURE. LET OUR ADVERTISERS KNOW THAT YOU SAW THEM IN INDICA MAGAZINE. Budfolio
Indica Magazine Online Issue No. 1 June 2014
President & Publisher
Tiffany Greene
Editor-in-Chief
Michael Carter
Managing Editor & Design Director
Cheryl Addington
Operations Director
Jason Osburn
Social Marketing Director
CannaCon
Social Marketing Expert
Carly Hofer
Flipz/Cool Jarz
Art Director
Josh Clappe
Cannabis Camera
Guaranteed Relief Happy Daddy Herbivore Designs Edibles by Hippy KK Ideal 420 Soil Kasher/SWADO Lush Lighting Method Seven Old School Breeders
Mekinsey M. Molinaro
Designers
Emily Cain April Greene Andy Rostar
Photographer
Max Bortnick
Executive Editor
Editor
Karen E. Szabo
Writers
Diana Campos Gina Epps Hippy KK Kandy Krush Kip Jarvis Paul Lembeck Miggy 420 Joe Martin Michael Mojave Samuel Wells
Gloria Martinez
Quantum 9 Scientific Soil Seedsman
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All contents ©2014 Indica Magazine. Indica Magazine is published and distributed by Vanguard Click Publishing, Seattle, WA. Indica Magazine does not condone or endorse any illegal use of any products or services advertised herein. All material is for educational purposes only. Indica Magazine recommends consulting an attorney before considering any business decision or venture. We take no responsibility for the actions of our readers. INDICAMAGAZINE.COM
Preparing for the Cannabis industry
Welcome to the first issue of Indica Magazine, a publication focused on the medical and political side of the Cannabis industry. It’s an ever-changing world we live in, and whether Cannabis consumption is for recreational purposes or medicinal use, there’s always something new making headlines that requires everyone’s full attention. Medical Cannabis and the relief it brings plays a crucial role in the lives of many: young, old and every age in-between. At the same time, the legal consumption of Cannabis for medicinal purposes is being threatened by other laws seeking to widen the decriminalization or legalization of Cannabis to include recreational use. Who’s protected under state laws?
focus on some of the most important factors to consider when opening up a dispensary, such as taxes and banking laws. It’s no secret that most commercial banks have wanted nothing to do with any cannabusiness. There are solutions, and we will point you in the right direction. I highly encourage everyone to utilize the slew of tools available on the Small Business Association (SBA) website (www.sba.gov). It has solid free business advice — everything from how to create a business plan to how to maintain and run a successfully business. Whatever it is you need to know, it’s all there. One note of caution, however: when searching the site, avoid using the keyword ‘Cannabis.’ It is the feds!
I live in a state where medical Cannabis is legal, but if you get caught with it in certain cities, you had better be prepared for a ride in the back seat of a patrol car, because city ordinances supersede state law. And even though I am surrounded by provisioning centers, only a few of them have, after years of applying, actually received their business license from the county. Similar cases abound all over the country. Indicia Magazine will serve as a touch point for reporting on the medical, the personal, the business and the political aspects of the medical Cannabis industry.
Beginning in this issue, we bring you a threepart series that covers all states in which medical Cannabis is legal, as well as who’s next in line. We also take a look at the new Health Canada, and offer a few important health tips to keep in mind for the flower products offered on the shelves of a dispensary.
To get things started, we’re providing entrepreneurs key tools and information on how to prepare for and start up a dispensary. We
Karen E. Szabo Editor karen@sativamagazine.com
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I welcome any comments or suggestion, so please feel free to email me. I hope you enjoy the first issue of Indica Magazine!
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COLUMNS
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Bright Shiny Objects Mama Epps hemp oil soaps Get the winter out of your skin with these luxurious soaps.
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Incredible Medibles Rhubarb Streusel Muffins Magic muffins from the magnificent Hippy KK.
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FEATURES 8
Health Canada’s Major Overhaul The new rules, regulations, and cultivation limitations of Health Canada’s MMPR explained. What’s In My Cannabis Explore methods to identify mold, mildew and pesticide related problems in your Cannabis.
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Cannabis, Taxes and Banking Learn about banking and tax related guidelines as they pertain to your Cannabusiness and federal law.
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Is Your Dispensary at Risk? Medical? Recreational? Legalization? Declassification? Get the facts here.
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Online Tools and Advice for Business Owners A compilation of useful online resources to assist with your success in the Cannabis industry.
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Breaking old laws and headlines: Cannabis Changing America, Part 1 Indica Magazine outlines the curing benefits of Cannabis products and what various states are doing to help pass medical marijuana measures.
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SPECIAL REPORT WASHINGTON, D.C. — The House passed an amendment late Thursday night to restrict the Drug Enforcement Administration from targeting medical marijuana operations in states where it is legal. The 219-189 decision came on a bipartisan appropriations amendment spearheaded by California Republican Rep. Dana Rohrabacher and California Democrat Sam Farr. The amendment still faces several procedural hurdles before it is ratified, but this is the first time such an amendment has succeeded in the House. The vote is an encouraging one for marijuana advocates, who say it shows the congressional pendulum is finally tilting in their favor. “The significance of it is a symbolic importance,” said Dan Riffle, director of federal policies at the Marijuana Policy Project. “We are nearing a point now where the United States Congress is essentially ready to end marijuana prohibition.”
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Health Canada’s
MAJOR OVERHAUL By Hippy KK Illustration by Andy Rostar
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edical Cannabis is legal in Canada and has been since 2000 (accessible since 2001). Under the rules of the Marihuana Medical Access Regulations (MMAR), Cannabis was easily accessible to those who needed it for medical reasons. However, effective April 1, 2014, a whole new set of rules apply and changes accessibility with a significant impact on those who can cultivate Cannabis when the new act of Health Canada’s Marihuana for Medical Purposes Regulations (MMPR) went into effect. The MMPR is Health Canada’s first attempt at a commercial industry for medical Cannabis and replaces the previous rules of the MMAR.
Up through March 31, 2014 It used to be, once an individual was approved under the Marihuana Medical Access Regulations (MMAR), individuals had three options for obtaining a legal supply of ‘dried’ Cannabis: 1) they could apply under the MMAR to access Health Canada’s very own supply of Cannabis; 2) they could apply for a personal-use production license which would allow them to cultivate their own Cannabis; or 3) they could designate someone to cultivate Cannabis on their behalf. The designated person would receive a designatedperson production license (or what we here in Michigan call a registered Caregiver).
Effective April 1, 2014 After March 31, 2014, only commercial producers licensed by Health Canada can legally grow Cannabis. The production of Cannabis in homes will no longer be allowed
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and is subject to severe consequences. The attestation requirement provides a clear obligation to destroy all Cannabis obtained under the old program. It’s vital that everyone knows anyone not in compliance will be referred to law enforcement and will be subject to arrest.
Why the major overhaul The reason for the major overhaul in Health Canada’s Cannabis accessibility is largely in response to concerns from stakeholders that the former system was being abused. After extensive research, the government of Canada introduced the new guidelines regarding Cannabis cultivation and access. It is Canada’s goal to regulate, manufacture and distribute Cannabis, just like any other narcotic that’s used for medical purposes via prescription.
How to access Cannabis as of April 1 Not only did the ability to cultivate Cannabis for one’s self or another get abolished, but so did the supply provided by Health Canada. If you already have a valid Authorization to Possess (ATP) under the MMAR, you can use your ATP to register with a licensed producer until the validity date shown on the ATP. If you do not currently have an ATP, you will need to do the following in order to obtain Authorization to Possess: Step 1: Consult with a healthcare practitioner Step 2: Obtain a Medical Document completed by your healthcare practitioner Step 3: Register and order with a licensed producer Step 4: Receive delivery of your medical
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Cannabis Individuals who are registering under the new MMPR law will not be issued an ATP. The label on the packaging that the Cannabis is contained in or a separate document from the licensed commercial producer will provide authorization to lawfully possess labeled Cannabis. After obtaining the medical referral, when registering with Health Canada, there is a specific requirement when registering that I’m not used to seeing: “daily grams of dried marihuana you are authorized to use, the period of use (i.e. number of days, weeks or months), which cannot exceed one year from the date the medical document is signed by the health care practitioner.” According to Health Canada, a person who is consuming medical Cannabis is not allowed to exceed the recommended dosage according their referring physician.
Who can grow Cannabis? Effective April 1, the only legal source of medical Cannabis will be produced under secure and sanitary conditions by a licensed commercial producer. For those licensed to grow under Health Canada’s former Marihuana Medical Access Program (MMAP), they had the option to transfer their plants, seeds and/or clippings to a licensed producer under Health Canada’s new MMPR. For those that chose this route, they had to submit an application of transfer to Health Canada, but they only had up until March 31, 2014; after that date, transfers would no longer take place. Applications to become a licensed producer are
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available on Health Canada’s website under, ‘Becoming a licensed producer.’ Requirements are strict and not limited to: obtaining the proper personal security clearances and meeting the physical security requirements for the cultivation and storage areas. Cannabis extractions, medibles, resins and oils are still not permitted under Health Canada’s MMPR, only the flower in its dry form. Storefronts are also prohibited. Health Canada is not planning on putting a number limitation on licensed providers, but all applicants must meet certain criteria before a license is granted. Health Canada, unlike the United States, does not put limitations on conditions for one to obtain a physician’s referral in order to use Cannabis for medical needs. A major overhaul took place in regards to how Canadians can now access and cultivate Cannabis, the strictest of those changes being in cultivation. It’s only been in effect for two months and there isn’t much talk about its effects yet. Since the new law took effect April 1, many were hoping it was an April Fool’s joke, but no such luck. Stay tuned for a future article about how Health Canada’s new law has affected its Cannabis consumers after it’s been in place a little while longer. Can medical Cannabis really be regulated just like a narcotic prescription, or is that just a pipe dream? S
Health Canada: http://www.hc-sc.gc.ca/ dhp-mps/marihuana/index-eng.php
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BRIGHT SHINY OBJECTS
HIPPY KK
Product review: Mama Epps hemp oil soap Rating: 4.5 nuggs Bac k w h e n t h e gro u nd was covered with snow and the temperatures outside were still frigid, I received a box in the mail from Mama Epps. It was full of Mama Epps hemp oil soap and it couldn’t have arrived at a more appropriate time. Opening that box put me well on my way to getting rid of my wintery dry skin. But now that winter is over and the warm weather has set in, I still continue to use it. Once all my samples are gone, I’ll be placing an order for more. Hemp has thousands of uses, and Mama Epps is putting it to good use in the all-natural hemp oil soap business that she began earlier this year. All of her soaps are made with hemp oil, olive oil, scented oil and mica. Don’t know what mica is? Don’t feel bad, neither did I — but according to Mama Epps’ website: “Micas are a natural product that is mined but then the individual mica is coated with FD&C colorants, or pigments, or a combination of both to achieve the colorant. The dual-sided color is what causes 14 14
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the shimmer and sheen of micas. Mica is exactly the same stuff you see in your lipstick, eye shadow and blush.” But back to the box I received. I split the contents and shared half with my daughter and kept the other half for myself. Knowing that they would get plenty of use, I placed a bar at both my kitchen and bathroom sinks and immediately began using the soap. I have extremely dry skin, especially in the winter time, and
this product worked wonders. I don’t know how many uses it took to notice a difference but I do know that within a matter of just a couple of days, there was a noticeable improvement and my hands were less dry. Within five days of using the soap several times a day, my hands were no longer dry, but smooth and silky feeling. My daughter had equally great results. Mama Epps hemp oil soap is currently available in 11 scents:
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Mama Epps, the family, and a sampler of soaps. Photos by Mama Epps.
almond, cinnamon bun, coconut, coconut-lime, coffee, ginger, patchouli, peach, pine, pumpkin pie or vanilla. Or if you prefer something less fragrant, nonscented soaps are available. Soap sizes are .50, 1, 3 and 4 ounces and come in various shapes. I received vanilla, almond and patchouli. The patchouli was my favorite and I did not share those with my daughter. These soaps are very reasonable priced and well worth it! Every sale helps support this small business. INDICAMAGAZINE.COM SATIVAMAGAZINE.COM
Now, I don’t know much about soap or how it’s made, but I do like a good lather. In other words, I like a lot of bubbles. That is one thing the hemp oil soap lacks and the reason I knocked off half a nugg on the rating. I’m pretty sure Mama Epps and any other soap manufacturer is going to tell me that that is an additive that makes the bubbles. So with that said, this soap doesn’t need a lot of bubbles, it works perfectly well as is and deserves 5 nuggs because if Mama Epps adds an additive,
her soap wouldn’t be all natural and it needs to stay just the way it is — all-natural hemp oil soap. Ebay: https://www.etsy.com/shop/ MamaeppsHemp Website: http://www.mamaeppshemp. com/page1.php Email: mamaeppshemp@gmail.com Facebook: https://www.facebook.com/ Mamaepps S JUNE 2014 15 JUNE 2014 15
INCREDIBLE MEDIBLES
HIPPY KK
Rhubarb Streusel Muffins For many reasons, summer is my favorite season. Mainly because I’m a heat miser and can hardly wait for all the fresh fruits and vegetables that come into season. I love walking out to my backyard and choosing what to cook up that day. We have several patches of rhubarb that never go to waste. I know, I know... so many people turn their nose up to rhubarb but let me tell you, I have turned so many people that dislike rhubarb into beggars for this recipe. I promise you, your taste buds will dance when you bite into one of these muffins. They are simply delicious! Note: Frozen rhubarb can be substituted if fresh rhubarb isn’t available. If using frozen rhubarb, measure while still frozen, then thaw completely in a colander but do not press out the liquid. Each serving contains 100 mg. THC. Yield: 18 servings Prep Time: 30 minutes Ingredients: 1/2 cup 1 cup 1/2 cup 1 teaspoon 1 2 cups 1.8 grams 1 teaspoon 1/2 teaspoon 1/8 teaspoon 1 cup 3 cups
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butter, softened brown sugar, packed sugar vanilla egg all-purpose flour hash baking powder baking soda salt sour cream fresh rhubarb, chopped
Topping: 1/2 cup 2 teaspoons 2 tablespoons
brown sugar, packed ground cinnamon cold butter
1 Assemble ingredients. Preheat oven to 350°F. 2 In a large mixing bowl, cream together butter and sugars. Add egg and beat well. 3 Combine flour, hash, baking powder, baking soda and salt; add to creamed mixture alternating with sour cream. Fold in the rhubarb. 4 Fill paper-lined or greased muffin tin ¾ full. 5 For the topping: in a small bowl, mix together the brown sugar and cinnamon; cut in butter until mixture is crumbly. Sprinkle over muffin batter and bake for 22 – 25 minutes or until a toothpick comes out clean. Allow to cool for five minutes before removing from pan. 6 Serve while still warm or allow to cool completely. Either way, they’re delicious! Because the sour cream makes these treats so moist, it is best to keep them refrigerated; in doing so, the muffins will last up to seven days. That is if there’s any left over to refrigerate. They also freeze very well. Feel free to alter the topping by adding nuts to the sugar/cinnamon mixture. Occasionally I will purposely have batter left over that I pour into a small square baking dish to make a coffee-cake type dessert. If you do this, don’t forget the topping! And now, my friends, are my famous last words: DO NOT drive or operate machinery after consuming medibles. Enjoy! S
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By Kandy Krush Illustration by Josh Clappe
Today, Cannabis labs test various strains of mold, mildew pesticides and potency. These new labs have brought new levels of precision to the world of Cannabis testing thanks to powerful and precisely calibrated laboratory equipment.
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s Cannabis becomes a more and more accepted form of medicine in our country, education about mold and mildew has come to the forefront as it becomes even more important for caregivers and government regulators to ensure patients are protected from this bacteria. Due to their weakened immune system, any quantity of mold or mildew can be a very serious problem for cancer or AIDS patients.
Health concerns? Mold spores can make you sick to your stomach if you eat them. Similarly, mold spores can introduce mold infections to your chest when you smoke it. Most molds are far more dangerous when ingested than when inhaled. Therefore, you should be extra careful of mold when putting Cannabis into edible treats, any amount of these microorganisms can have negative effects for patients, particularly those with compromised or weak immune systems. INDICAMAGAZINE.COM
You can check for mold yourself Mold is discovered by looking closely at your plants. It appears as either a gray stringy matter on the leaves or it may have black spots, dark green spots, or other unusual coloring on the leaves of the Cannabis plant. The mold will affect the look and especially the smell of the Cannabis, turning it a more musty and unpleasant odor. Probably the best way to identify mold on your Cannabis is to view it under a magnifying glass. The biggest danger with smoking Cannabis that contains mold is that it induces an allergic reaction. Many molds produce chemicals and carry cells that can cause severe allergic reactions. A long-term danger is that a toxin produced by the mold could have a lingering effect that would not be immediately identifiable and become a damaging health problem later.
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It is important to destroy all Cannabis that shows any sign of mold or mites as it can rapidly propagate to the remainder of your stash. You can try to remove all of the mold that you can see, but even if you remove all of it, mold can continue to produce chemicals that can spread throughout the rest of your Cannabis. Destroying the Cannabis is the best thing to do if you think you have a mold infestation.
Black and gray molds Common molds such as Stachybotrys can become a nightmare if found to be airborne. Now that it is legal to grow Cannabis for medicinal purposes in many states, it is a concern that this will become a more common problem. This type of mold is better known as black mold. All mold that appears to be black in color may not be the dreaded “black mold” that is Stachybotrys. If you think that you might have any kind of mold in your Cannabis you should consider professional mold testing. Botrytis Cinerea is the dreaded gray mold. It goes dormant to defy eradication efforts in harsh conditions. It travels on the wind, pets, interior air movement, tools, clothing, hair, and it often survives attempts to remove it.
New technology to test for mold Discovering the presence of mold in Cannabis samples helps doctors, dispensaries, health-care providers and growers offer quality Cannabis to their patients. Molds are fungi and some species of mold can produce highly toxic chemicals. Cannabis testing is now available and ensures safe practices regarding testing for molds, mildews, and the presence of pesticides. Today Cannabis labs test various strains of mold, mildew pesticides and potency. These new labs have brought new levels of precision to the world of Cannabis testing thanks to powerful and precisely calibrated laboratory equipment.
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SC Laboratories SC Laboratories in California is an example of one of the first companies to provide independent testing for medical Cannabis. Using highly sensitive equipment such as powerful microscopes and spectrometer, and an ultra-high performance liquid chromatography machine, SC Laboratories, can determine the potency of the Cannabis, chemical composition and if pesticides or mold is present. SC Labs tests for all of the most commonly used miticides, fungicides, and plant-growth regulators (PGR’s). According to their most recent press release, SC Labs use the latest engineering and proven methods to provide a comprehensive battery of tests for potency, pesticide, fungicide, and PGR residue testing of both medical Cannabis and agricultural products in total compliance with EPA, FDA and/or state ELAP guidelines using a combination of Liquid Chromatography/ Mass Spectrometry.
Conclusion As our country begins to embrace new cannabusinesses, it is important that the medical industry puts in place the appropriate controls that will keep Cannabis products free from damaging mold, mildew and pesticides.S
http://www.sclabs.com http://www.thenorthwestleaf.com/pages/ articles/post/cannabis-testing
http://bigbudsmag.com/grow/article/ marijuanas-evil-enemy-gray-mold-june-2011 http://www.farinfraredfitness.com/black-mold/ toxic-black-mold-syndrome/
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Booth Make spaces are your r eserva filling up tion n ow!
The Nation’s largest legal cannabis convention and lifestyle expo. Ever! If you’re serious about Cannabis as a business, for medicine or recreation, CannaCon is the most important event for you to attend in 2014. As the first event of its kind, CannaCon connects manufacturers to vendors, vendors to buyers and connects the entire cannabis industry to the public. CannaCon is the only place you can see 1000’s of goods and services representing the state-of-the-art in cultivation supplies, lighting technology, and control systems to maximize yields in your grow room. CannaCon Seminars will connect you with the information you need to succeed in the Green Rush. CannaCon has assembled the Who’s Who of the Cannabis world to offer
Connect Producers Processors Retailers Printing/Packaging Professional Services Business Seminars
lessons in canna-business operation, grow techniques, the latest information about cannabis as medicine, and the facts of legalization. The weekend becomes a celebration of Cannabis as a lifestyle where CannaCon connects your company to the consumer and connects all of us to the freedoms we’ve fought so hard to regain. Book your sponsorship or booth space today at CannaCon.org. Or call 206-941-0951 to speak to a representative.
Cultivate Lighting Irrigation Processing Greenhouse Supplies Growing Seminars Processing Seminars
Celebrate Sign up today
Booths Will Sell Out! To book your sponsorship and reserve your booth go to:
CannaCon.org INDICAMAGAZINE.COM
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CANNABIS, TAXES AND BANKING By David Moss Illustration by Emily Cain
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Background As more and more states legalize medical Cannabis, and Colorado and Washington begin implementing legalized systems for recreational Cannabis, more Cannabis distribution centers (“CDCs”) are appearing (Dispensaries, Cannabis Clubs, Collective Gardens, etc.). The state compliance and regulatory issues that these businesses face are intense. The businesses that successfully comply and gain legitimate legal standing under their respective state laws, are faced with another issue: conflicts with federal laws. Under federal laws, Cannabis continues to be a controlled substance. This means that all Cannabis distribution is prohibited by federal law, regardless of a state’s position. The disconnect between state and federal laws, creates a labyrinth of issues for the business owner. Banking and taxes are two areas that highlight the issue.
Banking As with most businesses, access to banking services can be critical to a CDC. The ability to take out loans, to deposit money, and to use checking accounts are things that most business owners take for granted. Banks, however, have been hesitant to work with CDCs. This is because the banking industry is federally regulated. Banks that knowingly deal with CDCs are technically violating federal laws aimed at stopping laundering proceeds from illegal drug sales.
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This February, the Treasury Department and the Department of Justice issued guidelines for banks in dealing with cannabusinesses. The guidelines require banks to file Suspicious Activity Reports (SARs) for Cannabis distribution centers, even those that are legitimate under State law. If the bank finds that the business is in compliance with State laws, then it is directed to write “Marijuana Limited” on the SAR. If the bank believes that the business is not in compliance with State laws, then it completes the SAR as either “Marijuana Priority” or “Marijuana Termination” (depending on whether they have closed/terminated the business account). The guidelines also suggest various “red flags” that banks need to look for in determining what SAR to file. This puts a burden on the bank to do substantial “due diligence” investigations on all CDC businesses that it may work with (not only before opening an account, but throughout the duration of the banking relationship). The guidelines are laid out as a directive to federal authorities that they prioritize drug activity that is not authorized by (and in compliance with) state law. In other words, the guidelines offer direction, but they do not change existing federal laws making Cannabis and its distribution, illegal. Without a change to federal laws (which must come through Congress), banks may remain unwilling to deal with CDC businesses.
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Taxes Taxes are a part of business, and CDCs need to pay taxes like every other business. For tax purposes, a business is generally entitled to deduct the ordinary costs of doing business from its income. These deductions include rent/mortgage payments, employee payroll, power, water, the purchase of business equipment, improvements to the business premises, etc. Currently, however, the Internal Revenue Service does not allow ordinary business deductions for CDCs. This is based on existing law denying deductions to businesses that are trafficking (distributing) illegal drugs (Section 280E of the Internal Revenue Code). The law predates legalization of medical and/ or recreational Cannabis in any state but is still being applied to CDCs. The result of not being able to access standard business deductions is significant. If a business cannot claim those deductions, then all of the revenue that a business spends on those items remains income to the business for tax purposes. Because the business income is much higher than it would be with access to deductions, its taxes are much higher. Because its taxes are much higher, it requires more income just to break even. And finally, because it requires more income, the prices the business charges must be higher. As the price of Cannabis increases, the potential profit to illegal markets increases as well. As long as illegal markets can beat the price of state-
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licensed CDCs, the demand for those illegal markets will exist and increase.
Reform If CDCs are to be truly legitimate businesses, they will need to have access to banks and they will need to be taxed as other businesses. The National Cannabis Industry Association is currently pushing for reform on both issues. According to its website (www. thecannabisindustry.org), its advocacy has helped in the introduction of two bills. The first bill, H.R. 2240 (“Small Business Tax Equity Act”), was introduced in June, 2013, by Rep. Earl Blumenauer from Oregon. The bill, if enacted into law, would provide that medical cannabusinesses that are legal under state laws, would be exempt from Section 280E of the IRC. The second bill, H.R. 2652 (“Marijuana Business Access Act of 2013”), would provide a “safe harbor” to banking institutions that work with cannabusinesses that are legal under state laws.
Conclusion While the banking guidelines and the two legislative bills are not law, both signify a change in the government’s willingness to discuss Cannabis. Legislative reform takes a long, long time. The Cannabis industry has gained its seat at the table, a necessary step as it transitions from an illegal marketplace to a regulated and legal marketplace. S
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IS YOUR DISPENSARY
AT RISK? By David Kennedy Illustration by Josh Clappe
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ost medical marijuana (MMJ) dispensaries are now subject to state laws and local law enforcement. Twenty-two states and the District of Columbia have enacted MMJ laws. Each of these states provide for the allowance of dispensaries, although their future is cloudy due to inadequate state support and overzealous local law enforcement. MMJ dispensaries are also in peril as the movement toward the wholesale legalization of Cannabis may render them altogether obsolete. California has allowed MMJ dispensaries for over a decade now. But in 2011, starting in Montana of all places, federal agents began raiding state dispensaries and thus ended up shutting down hundreds of dispensaries in Southern California alone. Those that remain open in California must have their owners undergo background checks, must be 1000 feet from schools, parks and “other gathering places” and must have an independent laboratory test all Cannabis for sale.
Legalization and declassification The biggest hurdle MMJ must cross is becoming legal by federal statute. There are several bills in the U.S. House of Representatives that would legalize Cannabis for medical use and declassify it as a Schedule 1 substance under the Controlled Substances Act. However, movement on these bills seems unlikely in a contentious election year. The Obama Administration has been entirely ambivalent on the issue. In 2009, the President sent a memo to federal prosecutors not to prosecute people who distribute Cannabis for medical purposes. But just last year, the Department of Justice reasserted its right to challenge the states over Cannabis distribution. Some states have better protections for their dispensaries than others; for example, the Michigan Supreme Court ruled against dispensaries, but there are many operating in the state anyway. Surprisingly, this is common. 28
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Some states and localities without dispensary regulations are seeing a boom in new MMJ businesses in the hopes of being approved before likely new restrictions are put in place. New Mexico protects its dispensaries well, and the punishment for possession is unusually light. Be careful in states like Maryland. Hawaii has a brand new dispensary system, but there is no way for patients to legally buy the Cannabis — the penalties for possession are very high. Many states do not allow MMJ cards from other states, so travelling around the country exposes you to radically different laws and antiquated federal statutes. Even today, the President vacillates on the subject. In a brand new interview with Rolling Stone magazine, Obama states, “I can’t nullify federal law… I never made a commitment that somehow we were going to give carte blanche to large-scale producers and operators of marijuana.” Just last month, Oregon tried to ban edible Cannabis items like hash brownies, spice cakes and other sweets. On a positive note, public backlash quickly convinced the Oregon authorities to back off of the ban, though no edibles can be made that could be “attractive to minors.” On a negative note, Governor John Kitzhaber signed a law in March that allows local governments to block MMJ dispensaries in their own communities. As of March 21, Oregon had cleared only 32 of more than 300 applications for new dispensaries. Many of the states that have already approved MMJ are in the process of making allowances for its use. Arizona’s law establishes a confidential state-run patient registry that issues ID cards to qualifying patients, where state-licensed, nonprofit dispensaries may produce and dispense Cannabis to patients on a not-for-profit basis. Delaware’s governor, Jack Markell, recently announced a regulated MMJ market and provisions for a dispensary program. Illinois has 60 dispensaries planned to open next year. Maine has protections for its own licensed, nonprofit dispensaries. Vermont INDICAMAGAZINE.COM
has opened a fourth dispensary with more than 1000 patients. Each state is different when it comes to how far along they are in making allowances for MMJ. The trend, despite its opponents, is that MMJ is becoming more and more accepted in the United States; however, no one is truly protected until the federal government changes its laws.
Recreational vs. medical? The debate continues And what about outright legalization? How will this affect MMJ dispensaries in Colorado and Washington? Colorado’s Amendment 64 legalizing marijuana did not address the matter of dispensaries at first, but access points are now widely available. Washington State, on the other hand, has been slow to adopt plans
http://thekinemine.com/recreational-medicalmarijuana-colorado-dispensaries/marijuanatourism-colorado http://www.nbcnews.com http://www.cnn.com/2011/CRIME/03/16/montana. marijuana.raids/
for the sale of Cannabis in state-run stores. Dispensaries are worried as some are being closed by localities — allowed in a newly issued ruling. The debate over dispensaries is gradually shifting towards legalization altogether, but the federal government is likely to advance the issue slowly. That means there is most likely not the support for full federal legalization, but there likely will be support for MMJ and its effects on those with serious medical conditions. The states are years ahead of the feds at the present time.
In Person I conducted an interview with the staff at the Highway 9 Wellness Center in Snohomish County on April 9th, 2014. S
http://www.maine.gov/legis/lawlib/medmarij. html
http://deerfield.suntimes.com/2014/02/15/3dispensaries-in-lake-county-planned-for-illinoismedical-marijuana-program/
http://potlocator.com
http://leafly.com/medical-marijuana/browse/ga/ atlanta
http://norml.org/
http://www.azdhs.gov/medicalmarijuana/
http://wheresweed.com/montana/billings/ marijuana-dispensaries
http://thehill.com/blogs/healthwatch/
http://medicalmarijuana.procon.org http://mmjbusinessdaily.com http://bangordailynews.com http://www.theweedblog.com http://www.cm-life.com/2014/02/18/growinggreen-new-medical-marijuana-regulations-couldaffect-local-dispensaries-send-production-out-ofmichigan/ http://www.hawaiinewsnow.com/story/25051720/ medical-marijuana-dispensary-measure-movesforward-in-legislature
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http://www.tokeofthetown.com/2014/04/medical_ marijuana_on_life_support_in_washington_state. php http://michiganmedicalmarijuana.org http://www.mpp.org/states/new-mexico/ http://www.unionleader.com http://washington.cbslocal.com/2014/03/17/ maryland-house-passes-medical-marijuana-bill/ http://www.huffingtonpost.com/tag/marylandmedical-marijuana/ http://brucealanblock.com/michigan-medicalmarijuana-dispensaries/
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ONLINE TOOLS AND ADVICE FOR BUSINESS OWNERS By Kandy Krush Illustration by Josh Clappe
T
he Cannabis industry is the fastest growing business in America. Throughout the country, thousands of people are succeeding in this multi-billion dollar industry. Now is the time to take advantage of these opportunities. Whether you are considering starting a cannabusiness, taking your existing cannabusiness to the next level or expanding your service to support the Cannabis industry, the internet offers a variety of sites that offer help. However, cannabusiness regulations vary wildly for each state. You need to know the details state by state — including local laws, number of dispensaries, patient status, estimated revenues, and what to watch for. What free tools are available for your business startup?
The U.S. Small Business Administration The U.S. Small Business Administration (SBA) provides a website with a plethora of diverse information for you to explore. You will find reliable information to help you begin your business, plus great advice to help you be successful. This site includes step-by-step information about creating your business plan, choosing your business structure, registering 32
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your business, obtaining a business license and necessary permits. You can also learn more about business law and regulations. Financial advice is available to guide you as you explore loans, grants and funding opportunities, as well as information on filing and paying taxes. The SBA helps Americans start, build and develop businesses. Through an extended network of field offices and partnerships with public and private organizations, the SBA delivers its services to people throughout the United States, Puerto Rico, the U. S. Virgin Islands and Guam. According to their mission statement, the U.S. Small Business Administration has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. The SBA website contains a lot of very useful information for anyone starting a small business, but we must point out that the SBA cannot personally assist a Cannabis-related business due the fact that they are federally funded. For more information: http://www.sba.gov/ INDICAMAGAZINE.COM
Women’s Business Centers — Helping women succeed in entrepreneurship Women’s Business Centers (WBCs) are part of a nationwide network that provides business training, counseling, and other resources to help women start and grow successful businesses. With funding from the SBA, WBCs can also advise women about business financing such as SBA loan programs. If you are interested in government contracting, WBCs offer direction and training resources to help you get started and navigate the process.
Begin a business with the help of a Veterans Business Outreach Center If you are a veteran or service-disabled veteran, Veterans Business Outreach Centers provide a full menu of services, including training, advice, mentoring, and business planning assistance. Funded by the SBA, there are 16 centers across the United States ready to help.
GUST — Cannabusiness School & Consulting Cannabusiness School and Consulting is a web-based business education site that is specific to the Cannabis industry. Taught by professionals, Cannabusiness School & Consulting offers what they claim are credible and understandable answers to key questions/ issues surrounding the Cannabis business. Fundraising can be a long and intimidating process. Entrepreneurs have the hard job of tracking down investors who are both interested and right for their clientele, and then supply them with the data they require to reach an informed investment decision. Gust
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simplifies this process by bringing together everything entrepreneurs need to connect and collaborate with investors. Over the last 12 months, 1800+ startups have been funded through Gust. For more information on GUST, visit: http:// www.gust.com
Protiviti Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audits. This house operates with small, growing companies including those expecting to go public. This firm claims to be experts in understanding the current, evolving regulatory landscape surrounding the provision of services to the cannabusiness industry. This firm is able to help you to develop enhanced monitoring procedures to help identify direct and risks of the cannabusiness industry. For more information on Protiviti, visit: http://www.protiviti.com
International Cannabis Association The International Cannabis Association (ICA) brings together people interested in starting, supporting or expanding a cannabusiness. The ICA offers educational conferences and networking events bringing together experts from across the Cannabis industry as well as people simply interested in getting started. As the Cannabis industry’s business-to-business association, the ICA is the professional’s source for timely, entrepreneurial and high-quality information.
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ICA will have its first ever “Green to Green” networking event and educational conference June 22–23, 2014 in Las Vegas, Nev. at the Hard Rock Hotel and Casino. The two-day event will include educational seminars with Cannabis industry experts, an expo hall filled with the latest products and services, and various networking opportunities. The ICA estimates the legal market for Cannabis sales will top $2.5 billion in 2014. Colorado recently made news by announcing the state had reached more than $2 million in taxes on sales of recreational Cannabis in January. For more info on the ICA or the event, please visit: www.iCannabis.biz.
StartupBizHub SatrtupBizHub is dedicated to serve investors, entrepreneurs, owners and managers in setting up a new business and running a successful company. They provide businesses with information on “How to Start”, “How to Run”, “How to Manage” and “How to Find Resources for” a start-up business. For more information on StartupBizHub, visit http://www.startupbizhub.com/
420 College 420college.org teaches seminars to help you to fully understand the laws required for opening up a new Cannabis business. You will have the opportunity to learn from the people who are aware of every recent decision, every recent piece of legislation, both State and Federal regarding medicinal use and legalization of Cannabis. Their instructors have been cultivating medicine for 10+ years, and you
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learn how to get the most “bang for your buck” when it comes to cultivating medicine. 420 College instructors have assisted with more than 200 medical Cannabis dispensaries and non-profit collectives for patient use in Los Angeles, California. President George Boyadjian has been helping folks establish corporations since he started 420 College in March of 2009. He also started “Fresno Compassion Association” a medical marijuana delivery service in Fresno County in 2009. 420 College brings hands-on experience to the seminars. Besides their own experiences, they bring experience from friends and associates that have operating in this industry for years. Attorney William McPike, who teaches “How To Start A Dispensary Business” curriculum of their live seminar, has successfully helped to open many dispensaries in California, which are still operating under state law. He continues to help folks open dispensaries. For more information on 420 College, visit: http://www.420college.org/
Conclusion Are you considering opening a business startup of your own? Opportunities abound right now for information on how to start your own cannabusiness. It is a challenging undertaking, with many rules and regulations, but free resources are available online for-profit and not-for-profit companies to help you get started and offer you the best opportunity to be successful. S
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Breaking old laws and headlines:
CANNABIS CHANGING AMERICA, PART 1 By Tami Jackson Infographic by Andy Rostar
M
any states across America are currently considering various levels of Cannabis legislation. Whether or not lawmakers want to authorize it for recreational or medical purposes, fewer and fewer states are willing to lock people behind bars for having small amounts of Cannabis. Whether a ‘small amount’ means 25 grams or 1 ounce depends on each state. One of the many reasons that laws are changing so quickly is partly due to parents of children with severe seizure disorders. Nationwide, they have been actively campaigning for new legislation that would allow them the option of choosing Cannabis as a medical treatment for their sick children. Yet a bigger reason more states are rolling out the welcome mat for new Cannabis legislation is that they’re seeing dollar signs. The potential for a Cannabis windfall via tax
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monies collected has many legislators rubbing their palms together. Studies by power houses like the RAND Institute and Harvard recently released tangible evidence that financial windfalls land on governments willing to regulate Cannabis in the same manner as alcohol. In a report released by the GoLocal News Team, on April 9th: “Rhode Island could bring in between $21.5 million to $82 million in revenue from the current legislative proposal to tax and regulate marijuana.” Twenty-two states, if we count the District of Columbia, have passed laws allowing doctors to ‘recommend’ medical Cannabis or its byproduct, the non-hallucinogenic cannabidiol oil, or CBD. While federal law still makes Cannabis illegal for any kind of use — medical or recreational — recent news from the Justice Department makes it clear that medical Cannabis patients JUNE 2014 41
STATES CONSIDERING PASSING MEDICAL MARIJUANA MEASURES
Alabama
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Georgia
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Utah
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still need to campaign and stay involved if they want to protect their interests. On May 20th, NBC news reported that the Federal Government placed yet another hurdle before Cannabis growers in Washington and Colorado by blocking their rights to use any of the federally monitored water sources for irrigating their crops.
Peel the buzz off Cannabis and some of the most stodgy legislators find it appetizing A new political trend in some of the most conservative states means fewer Cannabis consumers will be consuming. Hoping to modify the herb and package it as a more traditional medicine, some states plan to serve it to patients as CBD. Low in tetrahydrocannabinol, or THC, CBD is often used for treating seizure disorders in children. This is a huge win for sick children. The use of CBD to effectively treat rare diseases such as Dravet syndrome, a life-threatening illness with seizures as a primary symptom, is very promising. CBD oil is also being used for treating autism, epilepsy and a plethora of other childhood diseases. The Cannabis extract has made it possible for some of the most tediously oldfashioned and unprogressive legislators, from states like Alabama, Georgia, Kentucky, 42
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Mississippi
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Kentucky
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Wisconsin
Mississippi, Utah and Wisconsin, to consider passing what they refer to as “medical marijuana measures” when they’re only authorizing the use of CBD, not Cannabis. Yet CBD is not without its detractors. According to News-Medical.net, in a report released on May 23rd, Dr. Edward Maa, Chief of the Comprehensive Epilepsy Program at Denver Health in Denver, Colo., oversaw a case study to review Cannabis treatment for childhood epileptic seizures. That report detailed how one child with Dravet syndrome suffered 50 convulsions per day before treatment. After receiving CBD therapy, the child’s seizures were reduced to 2 to 3 nighttime convulsions per month. However, Dr. Maa remains skeptical about Cannabis being useful in treating childhood seizures. “As medical professionals it is important that we further the evidence of whether CBD in cannabis is an effective antiepileptic therapy,” he said. On Thursday, March 27, The Mississippi State House overwhelmingly approved a measure to allow for limited use of CBD oil in treating severe seizures. According to Worldnow and WDAM Channel 7, in an article written by Vanessa Pacheco, published on May 7th, Governor Phil Bryant signed the resultant INDICAMAGAZINE.COM
CBD OIL CURING BENEFITS • Seizures • Dravet Syndrome • Epilepsy • Neurological Disorders
House Bill 1231 on April 17th. The new bill keeps anyone but the University of Mississippi Medical Center’s pharmacy from dispensing the medicinal oil. The CBD oil will come from an Oxford research facility, the University of Mississippi’s National Center for Natural Products Research. Cannabis is already been grown there for medical studies, thanks to authorization from the National Institute on Drug Abuse. In March, Utah Gov. Gary Herbert, R, signed a new bill to help those with severe epileptic seizures. The bill will allow designated patients to use CBD oil. The bill passed in a Republican-controlled legislature, with 80 percent of voters belonging to the Mormon Church. “Charlee’s Law” takes effect on July 1st. Until then, Utah residents cannot legally possess Cannabis in any extract or form.
CURRENT POSSESSION PENALTIES ALABAMA • $6,000 Misdemeanor Fine • 1 Year in Jail TEXAS • $2,000 Misdemeanor Fine • Up to 6 Months in Jail
$
neurological disorder that could be treatable by CBD but the bill to legalize it was shot down when it failed to advance out of committee before the crossover deadline. This bill would have become effective June 1st had it not just recently died in committee. So getting caught in Alabama with any amount of Cannabis will still get someone a $6,000 misdemeanor fine with a year in the slammer. Meanwhile, in Texas, get caught with the tiniest Cannabis crumb in the second-largest state in America and you’ll be facing a $2,000 fine and a misdemeanor charge that could result in up to six months in jail. While there is some political talk of decriminalizing Cannabis, or at least lessening the penalties in the Lone-Star state, there’s no current legislation making the news in that regard.
Stay on top of the facts
Alabama has been called the most conservative state in all of America. Yet progress seems evident since Alabama Legislature recently looked more compassionately at patients suffering from severe ailments that Cannabis may alleviate.
With new Cannabis bills being introduced and passed or denied so quickly, it’s smart to get updated information on your state. For the most current details, try searching your state’s name and “marijuana bill” for the most up-todate information. S
The state’s measure called “Carly’s Law” (S.B. 174) was named after three-year-old Carly Chandler of Birmingham. She suffers a severe
In part 2, we’ll discuss what’s happening with a few other states and their new Cannabis legislation.
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