CANNABIS CORNER – TRANSCRIPTS:  January 13, 2015
Hosted by Debby Moore AKA Hemp Lady on http://www.BaconRock.com – Tuesday 8:00 PM CST
Debby Moore is CEO & Director of Research for Hemp Industries of Kansas
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Program Sponsors:
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Global Million Man Marijuana March – May 2, 2015 – Riverside Park – 11:30 to 1:30 – Bring your own sign & Smile.
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Pubdate: Sun, 11 Jan 2015   Source: Illawarra Mercury (Australia)
Copyright: 2015 Illawarra Newspapers   Contact: editor@illnews.com.au
Website: http://www.illawarramercury.com/   Details: http://www.mapinc.org/media/205
Author: Joshua Butler
SNIFFER DOGS WRONG IN 61% OF WOLLONGONG CASES
Wollongong police have defended the use of drug detection dogs, despite data showing up to 61 per cent of searches in the Illawarra returning no result.
Data provided by NSW Greens MP David Shoebridge showed there were 156 searches conducted in Wollongong after a drug dog indication in 2013, but drugs were found in only 60 of those searches - what Mr Shoebridge calls a “false positive” rate of 61 per cent.
There were 69 searches in the Lake Illawarra area in 2013 with drugs found in 41 cases, while 10 drug searches in the Shoalhaven turned up four positives.
Mr Shoebridge’s office said the data was provided from a question on notice he had placed before the NSW Parliament.
Illawarra numbers are below the state average of 64 per cent “false positives” with drugs found in just 6415 of 17,746 searches in 2013; and far below the 80 per cent “false positive” rate from the Transport Command, which found drugs in just 366 of 1876 searches.
Despite the numbers, a spokesperson for the NSW Police Dog Unit defended the use of drug dogs.
“Dogs are able to assist police to locate prohibited drugs being carried by a person, secreted in a house, vehicle, building and open spaces,” the spokesperson said.
“Dogs are effective at locating odour and ... is one of many indicators [police] use to decide if a search is to be conducted.”
Dogs can reportedly detect residual drug traces on a person’s clothes or body long after the drug has been consumed or disposed of.
Superintendent Kyle Stewart, Commander of Wollongong Local Area Command, said drug detection dogs helped combat Illawarra drug crime.
“We use dogs at specific events where prohibited drugs are known to be used and supplied,” he said.
“We see the use of drug detection dogs as an important strategy. Drug dog operations around licensed premises are another way to increase public safety and reduce anti-social behaviour.”
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Pubdate: Fri, 09 Jan 2015   Source: Toronto Star (CN ON)   Page: S8
Copyright: 2015 The Toronto Star   Contact: lettertoed@thestar.ca
Website: http://www.thestar.com/   Details: http://www.mapinc.org/media/456
Author: Dana Flavelle
BAY STREET LAW FIRMS GOING TO POT
Corporate Lawyers Aim To Gain From Changes To Rules Governing Access
To Medical Marijuana
The pot industry has long created work for criminal lawyers. But now it’s attracting some of the biggest corporate law firms on Bay Street.
A change in the federal rules governing access to medical marijuana has created a wave of new business opportunities, not just for pot growers, but also for lawyers, accountants and investment bankers.
Need help filing a licence application? Raising money on the TSX?  Signing commercial agreements with suppliers? There’s an expert for that. “You have an industry where there’s going to be real commercial activity and consumers of legal services,” says Hugo Alves, a partner with Bennett Jones LLP, a leading corporate law firm in Toronto. “We want to be the go-to advisers.”
Bennett Jones is just one of several law firms trying to get in on the ground floor of an industry that Health Canada figures suggest could be worth $1.3 billion within a decade.
Under the old rules, Alves said, there was really no way for corporate lawyers to get involved in the medical-marijuana market.
Since 2001, patients who required medical marijuana were essentially allowed to apply for a Health Canada licence to grow their own.
Initially meant to serve a limited number of seriously ill Canadians, the program quickly spiralled out of control, the federal agency has said.
Some 37,000 Canadians now have personal production licences. The system was fraught with potential health and safety hazards, not to mention the risk of diversion to criminals, Health Canada claims.
Under the new rules, patients must buy their medical marijuana from commercially licensed producers.
The rule change created a “Green Rush” of so-called “pot-preneurs,” one that has seen some of the first licensees raise millions of dollars from investors.
Toronto-based PharmaCan, which began trading on the Toronto Venture Exchange on Dec. 17, 2014, is one of the new breed of investors.
A private equity firm, the company has raised $13.5 million in four rounds of financing and invested in eight companies, including five licensed production facilities.
PharmaCan’s current market value is $27.5 million, a figure that’s dwarfed by Tweed Marijuana Inc., the first publicly traded producer.  Housed in the old Hershey’s chocolate factory in Smith Falls, Ont., Tweed is valued at $97.5 million.
Still, the industry is facing a number of challenges, including backlogs in the licensing process, product recalls and inadvertent drug seizures, along with delays in receiving needed RCMP security clearance.
Investors are also awaiting the outcome of two critical legal challenges that could determine the size and scope of the market for these new commercial enterprises.
The first case, which goes to a federal court in British Columbia on Feb. 23, will determine whether the thousands of Canadians with personal licences to grow medical marijuana can be forced to switch to commercial suppliers.
Vancouver-based pot activist Jason Wilcox, who is leading the challenge under Canada’s Charter of Rights and Freedoms, says many patients can’t afford the higher prices commercial facilities will charge.
PharmaCan chief executive officer Paul Rosen says he’s not worried about the outcome. Most patients are going to want to buy from highly regulated, inspected commercial facilities, he says. “We’re in this for the long term.”
The second case, which will be heard in the Supreme Court of Canada in March, will determine whether medical marijuana can be sold in other forms besides dried flowers.
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Pubdate: Thu, 08 Jan 2015   Source: National Post (Canada)   Page: A10
Webpage: http://mapinc.org/url/4BrWntAX   Copyright: 2015 Canwest Publishing Inc.
Contact: http://drugsense.org/url/wEtbT4yU   Website: http://www.nationalpost.com/
Details: http://www.mapinc.org/media/286   Author: Brian Hutchinson
POTENTATES OF POT TAKE ON TRUDEAU
Run At Liberal Nomination Aims To Sign Up Smokers
The old building at 307 West Hastings St. is like a marijuana superstore, without any marijuana for sale. There’s a large retail shop on the ground level that offers old-school pipes and papers and bongs, and pricey high-tech vaporizers for the modern, more health-conscious crowd. Upstairs there’s a comfortable if malodorous lounge where bring-your-own cannabis products are openly consumed.  Tobacco smoking is not allowed.
Everywhere there are illustrations and pictures of this town’s patron saint of marijuana, the so-called Prince of Pot, Marc Emery. This is his joint, and on most days since his release last summer from a U.S.  prison, where he served a five-year sentence for selling marijuana seeds, he can be found inside his store or in the lounge, getting high and handing out free samples of potent hash oils and what he calls his “8-bud blend.”
Mr. Emery is as cantankerous as ever, directing written and verbal jabs at anyone whom he considers an enemy of the marijuana freedom and legalization movement, and to those whom he perceives as threats to himself and his wife, Jodie. His targets include Stephen Harper, whom both Emerys despise.
They have also included Liberal Leader Justin Trudeau. Which is a problem for Jodie.  She’s a politician. She once ran as a provincial Green Party candidate in B.C.. She’s now a member of Mr. Trudeau’s Liberal party, and hopes to be his candidate in the riding of Vancouver East in the coming election. Vancouver East is NDP territory, long held by MP Libby Davies, who recently announced that she won’t seek re-election.
It’s hard to tell if Ms. Emery’s intentions are a lark, perhaps a publicity stunt to benefit her and her husband’s mini-business empire, or if she’s serious.
“What if some radical managed to get a position and ran for the party and caused a massive headache and caused them to lose the election?” she asked, during an interview this week inside her third floor office at 307 West Hastings. “Some people might say that would be me,” Ms.  Emery added with a laugh. “I’m just joking.”
A large bong sat on a desk inside the office. On another desk lay a back issue of Cannabis Culture magazine, which the Emerys used to publish. I picked up the magazine and a sprinkling of medium-grind marijuana slid from the front cover and fell onto the floor.
Ms. Emery, 30, doesn’t like being called a one-issue candidate, but marijuana and marijuana legalization seem the most important things to her, after her husband. She smokes marijuana recreationally, she advocates for it, she wants it to be made accessible to every adult in Canada.
Two years ago, after Mr. Trudeau became Liberal leader and declared his party in favour of marijuana legalization, the Emerys decided they could endorse the Grits. Last year, a pair of Vancouver East riding executives asked Ms. Emery if she would put her name forward as the Liberal candidate. She thought it over for a couple of months and then decided she would do it.
Not every Liberal was thrilled. The Emerys are controversial. And Mr.Emery and Mr. Trudeau have a history, of sorts. In 2009, before he went to prison, Mr. Emery made a fiery speech attacking Mr. Trudeau, who was then just an ordinary Liberal MP. Mr. Trudeau had voted in favour of a Conservative government bill supporting mandatory minimum sentences for lawbreakers, such as unlicensed marijuana cultivators.
“[Mr. Trudeau] has smoked with me four or five times,” fumed Mr.  Emery, “so it really pisses me off when I see Justin Trudeau, who took big gaggers with me, is in Parliament actually voting for Bill C-15.  What a f—king hypocrite.”
Mr. Trudeau later accused Mr. Emery of “flat-out lying” and said he had never smoked marijuana with him.
Her husband has mellowed, Ms. Emery claims. “Since Marc’s been out of prison, a lot of people were waiting to see how outrageous he would be, what kind of crazy statement he would make, how he would humiliate Trudeau,” she says. “But a lot of people forget that prison kind of calms one down, and as time goes by, you have a chance to stop and think and strategize.”
The strategy for securing the Vancouver East nomination? Sign up as many pot smokers as possible. Ms. Emery has been door-knocking and signing up new party members, and running a nomination campaign from her office at 307 West Hastings, where the walls are festooned with in-house posters that encourage patrons to join the federal Liberals.  Because, the posters read, “The Liberal Party wants to Legalize Marijuana.”
Meanwhile, her husband takes shots at the three other Liberals hoping to secure the nomination. They include Joanne Griffiths, a local volunteer and former wife of Arthur Griffiths, the once wealthy, now down-on-his-luck Vancouver businessman.
Her “entire life has been giving away money and [she] has never had to struggle a single day in her life,” Mr. Emery recently posted on Facebook. Ms. Griffiths countered that for years she has “worked hard to help people in need.”
To date, none of the four hopefuls have had their nomination papers approved by party headquarters, and a nomination meeting has not yet been scheduled. The fix is in, Mr. Emery suggests. He claims that Mr.  Trudeau favours someone other than his wife.
Given everything, that seems plausible.
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Pubdate: Sat, 10 Jan 2015   Source: Los Angeles Times (CA)
Copyright: 2015 Los Angeles Times   Contact: letters@latimes.com
Website: http://www.latimes.com/   Details: http://www.mapinc.org/media/248
Author: Sean Silbert, Silbert is a special correspondent
CHINA SENTENCES JACKIE CHAN’S SON
BEIJING - The son of action comedy star Jackie Chan pleaded guilty Friday to providing a venue for drug users, one of thousands caught up in a widespread crackdown on illegal drugs in the capital.
Jaycee Chan was sentenced in a courtroom in the Chinese capital to six months in prison and a fine of about $322.
The 32-year-old was detained in his Beijing apartment in August, along with 23-year-old Taiwanese movie star Ko Chen-tung, known as Kai Ko, among others. Ko was released after a 14-day administrative detention for drug use.
The state-run New China News Agency reported that both tested positive for marijuana use, and police seized 3.5 ounces of marijuana during the raid, crimes that, according to the news agency, have a maximum sentence of three years.
“I violated the law. I deserve to be punished,” Chan said in trial video that aired on state broadcaster CCTV. “When I return to society, I won’t do it again.”
Video of the raid, including Chan identifying marijuana in his home, was shown on national television before his plea. The CCTV report said Chan had told police he had been using illegal drugs for eight years.
Chinese authorities’ attitudes on drug use traditionally have been severe, with little distinction between marijuana and harder drugs, and enforcement has intensified since the summer. Drug abuse, nearly unheard of before the 1980s, is now a growing problem.
In February, China’s public security ministry instructed national police to “get tough” on drug use and prostitution. President Xi Jinping echoed this in June when he called for “forceful measures” against illegal drug use.
The edicts spurred raids in the summer that, according to police, ended in the detention of more than 7,800 people on drug charges.  Officers visited bars and nightclubs and used on-the-spot drug tests.
Authorities deported foreigners who tested positive.
Those detained included notable actors, directors and pop stars whose names were publicly listed. The State Administration of Press, Publication, Radio and Television has said such cases were a bad example for the country’s youths.
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Pubdate: Thu, 08 Jan 2015   Source: NOW Magazine (CN ON)
Copyright: 2015 NOW Communications Inc.   Contact: letters@nowtoronto.com
Website: http://www.nowtoronto.com/   Details: http://www.mapinc.org/media/282
Author: Matt Mernagh   MATT MERNAGH
Author of Marijuana Smoker’s Guidebook (Green Candy Press) and host of
The Mernahuana Zone webcast, Tuesdays at Vapor Central. @mernahuana
The younger stoners jokingly refer to me as the Lady Gaga of Ganja for my cannabis costumes at our 4/20 smoke-outs. But my style is more David Bowie. Outlandish clothes help hide my physical shortcomings - in my case my crooked spine.
Sometimes I view my body as broken. Chronic pain has me measuring my suffering on a scale of one to 10 every day. It’s a way to help me understand a body riddled with hidden health issues: scoliosis, arthritis, fibromyalgia.
Marijuana is my other coping mechanism. A decade of our public puff-downs has pushed pot prohibition onto the front pages, but the federal government continues to restrict access to medical marijuana and threaten to jail people for growing their own medicine.
I did time in the Don for growing my own in 2008. I got a licence to possess pot after taking the government to court, but I’m still not sure if I’m going to get busted anyway every time I travel outside Toronto. The government continues to deny marijuana’s therapeutic benefits. Now they’ve turned over production to a few big companies that are making it too expensive for many who require pot as medicine.  It’s the only medicine that’s helped my seizures. Another ruined me so badly, I shattered my shoulder and was in physiotherapy for a year.  But that experience instilled a strong workout ethic that continues six years later.
Without my medical marijuana - and weekly Pilates sessions - I’d never have become physically able to ride a bike, walk, climb a mountain (Grouse Grind) or have the courage to be photographed sans clothing.
Doing spectacularly fun stuff is my other way of giving pain the middle finger. Mentally, though, it can be extremely upsetting to know the pain will never go away. Mindfulness is teaching me to let certain feelings go and focus on the moment.
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Pubdate: Thu, 08 Jan 2015   Source: Sun Times, The (Owen Sound, CN ON)   Page: A1
Copyright: 2015 Owen Sound Sun Times   Contact: http://www.owensoundsuntimes.com/letters
Website: http://www.owensoundsuntimes.com/   Details: http://www.mapinc.org/media/1544
Author: Denis Langlois
POT PLANT PROPOSAL WELCOME NEWS
Planned Medical Marijuana Facility Would Bring 100 Full-Time Jobs
A Toronto-based company hopes to transform the remaining section of the former PPG plant in Owen Sound into one of the largest medical marijuana production facilities in North America.
The Canadian Bioceutical Corporation said the operation, which it announced Wednesday, will go ahead as soon as the firm receives the required licence from Health Canada.
The plant, once fully operational, would employ up to 100 people full time, the company and city said in separate news releases.
“That’s the start. Who knows where it could go? But a manufacturing firm that employs 100 people is rare these days anywhere,” Owen Sound’s economic development manager Steve Furness said in an interview.
The prospect of the new plant and resulting jobs is welcome news in the city, which has seen several factories and other businesses close in recent years.
Owen Sound Mayor Ian Boddy said along with the jobs inside the plant, there will likely also be spin-off employment such as for transportation and packaging.
“We need it badly. We need the jobs and we need the assessment of an industrial plant again. These are the things that we’re after,” he said in an interview.
Boddy, who has met with the company’s president and CEO Scott Boyes, said the firm believes the 155,000-square-foot building is the perfect site for their new facility.
Boddy congratulated local developer Peter Van Dolder and the rest of the ownership group at Peninsula Pro-Growth business park for revitalizing the vacant factory “and making it possible to attract new manufacturers” like Canadian Bioceutical.
The publicly traded company, formerly known as Allegiance Equity Corporation, has been developing herbal and natural-based medicines and supplements for more than 20 years.
The company plans to expand its business “into the production, processing and distribution of medical marijuana and cannabisbased medicinal products,” it said in a news release.
The company noted in its release a B.C. Appeal Court ruling in August that said limiting patients from access to other types of cannabis medicines, aside from the dried variety, is unconstitutional. The court gave Health Canada one year to amend the language of its medical marijuana access regulations.
“When the regulations are amended later this year (as anticipated), we hope to be ready to supply patients with multiple formats of high quality cannabis medicines,” the release said.
The planned offerings include cannabis extracts in the form of capsules, oils, tinctures and creams. The firm’s newly incorporated, wholly-owned subsidiary Bio-Cannabis Products Ltd. recently submitted an application to Health Canada to become a licenced producer under the Marijuana for Medical Purposes Regulations, which came into effect on April 1.
It said it will take “significant time and cost” to obtain the licence.
Meanwhile, Boyes said the company has signed a letter of intent to lease the former PPG building, which he called ideal for the proposed new operation.
“The region offers a capable labour force with a strong small town work ethic, while business costs and taxes are favourable compared to many other jurisdictions in the province. But, just as important, we also found a highly supportive municipal government and community anxious to encourage the growth of new business and employment,” he said.
Boyes said the company will start right away to “adapt the building to support the cultivation, processing, packaging and distribution of medical cannabis and cannabinoid-based products.”
Owen Sound city council passed a motion last month to kick-start a process to establish areas of the city where Health Canada-approved medical marijuana production facilities are permitted. It approved a staff recommendation to hold a public meeting on a proposed zoning bylaw amendment that, if approved, would allow the buildings on industrial lands that meet certain criteria.
The proposed areas include the former PPG plant land.
At the time Owen Sound officials said the city was being proactive by starting the process on its own. They acknowledged receiving some inquiries from potential medical marijuana production firms but said no formal applications had been received.
Health Canada introduced regulations in June 2013 to permit larger-scale medical marijuana production facilities. The producers must be licensed by Health Canada and the facilities must meet certain requirements for quality control and security.
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Pubdate: Mon, 12 Jan 2015   Source: Sydney Morning Herald (Australia)
Copyright: 2015 The Sydney Morning Herald   Contact: letters@smh.com.au
Website: http://www.smh.com.au/   Details: http://www.mapinc.org/media/441
Author: Michael Bachelard, Indonesia correspondent Banda Aceh
CAFFEINE HIGH TAKES ON NEW DIMENSION IN ACEH
Aceh might be famous for its brutal application of Islamic sharia law, but it’s also where a certain intoxicating weed has been getting people high for generations.
Marijuana sales once helped fund the 30- year war waged by separatist rebels and when they descended from their mountain strongholds after the 2005 peace deal, the plantations remained.
To this day, two lucrative cash crops - coffee and “ ganja” - provide a healthy income in Aceh’s rural hinterland.
In a pungent smoke haze at a secret location in the capital, Banda Aceh, an enterprising group of young stoners is combining the two into what could perhaps be viewed as the essence of Aceh.
Syahrul* and his two buddies take 250 grams of rich, dark Arabica beans grown in Gayo and mix in 10 grams of the finest, fieldgrown organic mull, then, squatting on the floor of their tiny room, they grind it all together.
The end product is packaged like normal coffee and named with a wink after the infamous civet catexcreted Coffee Luwak: they call it “ Coffee Lawak”, which literally means, “ Coffee Buffoonery”.
“ Coffee normally makes you feel alert and wakes you up,” Syahrul says. “ This coffee doesn’t do that.”
They sell their special mix to cafes in Banda Aceh where you can buy a cup for 70 cents  compared with 30 cents for a normal espresso - if you know what to ask for. And it’s delicious. The three boys - all Muslims - insist their brew is guilt free, because it’s permitted under Islamic law. Their home-made religious ruling is based on the fact that nowhere in the Koran is ganja mentioned. It’s the same grey area that allows millions of Muslims to smoke cigarettes.
Wrong, Banda Aceh’s sharia police enforcement chief Evendi Latif says: “ Any substance with an intoxicating effect is haram [ illicit]” .
But it’s not mentioned in the Koran? “ That’s just an excuse they use to smoke ganja,” he says.
The Acehnese have a long tradition of cooking with weed. It made the best goat curry in the land, so they say, and, if you know where to go, you can still sample it. That too, sadly, is haram, Latif says.
Despite these fatwas, Aceh’s drug addiction is profound. Acehnese are often caught shipping ganja by the tonne to the rest of the country and recently police destroyed 800,000 plants on a property four hours walk from the nearest road. Some suggest that these raids are merely to protect a much bigger and more lucrative business run by the police themselves.
Aceh is also the link between Malaysia’s huge ice manufacturing factories and the growing market for the drug ice in Indonesia, where it is called sabu sabu. A police officer was arrested in October trying to smuggle a kilogram of it into the country.
The sabu sabu trade distresses Syahrul and his buddies. They say pushers are targeting high school students with cheap product to get them hooked. “ We don’t like that. It’s synthetic and no good,” Syahrul says.
“ We like this,” says his friend, indicating the joint smouldering between his fingers. “ We’re just nature lovers at heart.”
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Pubdate: Wed, 07 Jan 2015   Source: Nation, The (Thailand)
Copyright: 2015 Nation Multimedia Group   Contact: letters@nationgroup.com
Website: http://www.nationmultimedia.com/   Details: http://www.mapinc.org/media/1963
Author: Ken Albertsen
REFORM OF ANTI-DRUG LAWS LONG OVERDUE
Reading the article “Punishments for drug offences to be reviewed” was like grabbing a cup of water after a long slog through a desert.  How many young people’s lives have been unfairly ruined by the draconian drug laws in Thailand and other Southeast Asian bureaucracies  tens of thousands, or hundreds of thousands?  Thailand’s drug laws follow those of the US note for note. America is slowly getting reasonable on that topic, but I’m surprised Thailand is following just by months instead of years.
Recently some of the strictest archconservative Americans met and realised what reasonable people have known for a long time: The “war on drugs” can only be lost. There are much more effective ways of curtailing drug use than killing or harshly punishing users and mules. I’m glad Thailand’s leaders are coming around, albeit belatedly, to a modicum of reason.
Ken Albertsen
Chiang Rai
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Pubdate: Wed, 07 Jan 2015   Source: Alaska Dispatch News (AK)
Webpage: http://drugsense.org/url/Wwf3MjUS   Copyright: 2015 Alaska Dispatch Publishing
Contact: letters@adn.com   Website: http://www.adn.com/
Details: http://www.mapinc.org/media/18   Note: Anchorage Daily News until July ‘14
Author: John Havelock
Note: John Havelock is a former Alaska attorney general and was a supporter of Ballot Measure 2, the initiative by which Alaskans voted to legalize marijuana in 2014.
ALASKANS VOTED TO LEGALIZE MARIJUANA, NOT TO CREATE A POT INDUSTRY
The 52 percent vote for legalization of marijuana was a vote for decriminalization. No more sending our young folk to jail, ruining careers before they get started with criminal records, spending money on prisons not education. It was not a vote to build a vibrant marijuana industry. The model we should be following is a tighter version of cigarette control, not alcohol.
The early 20th century drive that brought us alcohol prohibition was fueled by moral sentiments. The health case was there but not nearly as well documented as today. As the insanity of prohibition became more obvious, the public’s growing disdain was so strong that alcohol entered the market as if it had been a condemned form of candy.
The death rate from alcohol is perhaps not as obvious as the murderous effects of cigarette smoking. The cigarette death rate allowed a movement against the preexisting, normal commercialization to gain footing notwithstanding powerful resistance funded by the enormous profits and employment base of the tobacco industry. With marijuana, no giant industry is in place with that kind of financial and political power to resist sensible regulation.
Commercial advertising can be a baleful industry. Like corporate life in general, it is short on moral limits. Advertising is about growing profits through enhanced sales. An example: Apparently we have to explain to our children and grandchildren at an early age what “erectile dysfunction” is, as the advertising industry works on TV to enhance aphrodisiac sales. Tough luck for Alaska’s reindeer horn exports.
Mind-altering drugs, available by prescription only, kill far more people every year than all illegal drugs combined. Their consumption is encouraged by ads directed at the general public: “Ask your doctor...” even though any information on the nature of a prescription is strictly the doctor’s business and should come from her to you. The U.S. Food and Drug Administration requires that advertisers list damaging side effects. But they are buzzed through in the ad like source explanations in political ads.
Big advertising has been a co-conspirator in America’s obesity epidemic with its sales of salt, sugar and now caffeine-saturated “soft” drinks, to be consumed by the underaged until they can drink whiskey and beer. But that’s another story.
The world would be better off if alcohol had never been discovered.  When prohibition was repealed, it would have been better to have legalized it with controls on marketing. As that child figuring out what erectile dysfunction is turns to alcohol advertising, he finds out that the very coolest people consume alcohol at terrific parties and that it is a great way to be beautiful and meet beauties.
Decriminalization of marijuana does not mean we follow the liquor road. Like cigarettes, marijuana should have continued availability to avoid criminalization with appropriate classification, but should be sold only with applicable warnings and no sales pitch.
Most of you do not want your children to be exposed to ubiquitous TV ads that tell them that smoking marijuana is as American as apple pie and that they should try higher octane varieties for a sweeter sense of satisfaction. As the Legislature parses the issues, you don’t want to see a rubbing of hands at the prospects of growing a great industry so that state revenue will be enhanced. We are permitting marijuana, not encouraging its use. A reasonable tax regime should be a part of the system, but not so high that the illegal industry retains a footing through the price differential.
Marijuana is not good for you. There is no nicotine in it, but smoke in your lungs is not healthy. Early Colorado data show that about 25 percent of users are those who use marijuana almost every day. The heavy user functions below par. No, it’s not addictive like heroin or meth, but a psychological addiction can become compulsive too. Many a young person out there has been badly, sometimes irretrievably damaged.
So let’s not let the advertising industry take over even if, wherever we go with marijuana, the decriminalization of possession, use and sale is still a good result.
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Pubdate: Fri, 09 Jan 2015   Source: San Francisco Chronicle (CA)
Webpage: http://drugsense.org/url/MIM8vBbl   Copyright: 2015 Hearst Communications Inc.
Contact: http://www.sfgate.com/chronicle/submissions/#1   Website: http://www.sfgate.com/chronicle/
Details: http://www.mapinc.org/media/388
BUZZ OVER MARIJUANA EQUITY FIRM’S FUNDING
The legal marijuana industry is estimated to be worth $2 billion to $3 billion, says Taylor West of the National Cannabis Industry Association.
Bay Area venture capitalists have built an industry on risky investments. But until Thursday, the largest firms have kept their distance from one unpredictable market: marijuana.
Founders Fund, a venture capital firm well-known for backing Facebook, Palantir Technologies and SpaceX, has changed that by investing undisclosed millions in Privateer Holdings, a Seattle private equity firm focused on the burgeoning medical and recreational marijuana sectors. Privateer called the funding round the first of its kind.
“It’s a big moment in terms of planting a flag for the industry,” said Taylor West, deputy director of the National Cannabis Industry Association, a trade group. “Up until now, almost all of the investment has come from individuals, from private investors - often from friends and family of the business owners.”
Founders Fund is bigger than that, with a reputation for lucrative investments and high-profile names including PayPal co-founder Peter Thiel on its payroll.
“In any industry a company would be thrilled to have Founders Fund as an investor,” said Brendan Kennedy, Privateer’s CEO. “In this industry, for a lot of people, it’s unfathomable.”
Privateer has raised $22 million through Series A funding and a convertible bridge note. The firm previously raised money from wealthy individuals and families. The Founders Fund investment - the scale of which Privateer wouldn’t confirm - is part of a Series B funding round.
Founded in 2010 as a collaboration between three MBAs, Privateer became the first private equity firm to invest in the cannabis industry in 2011 when it acquired Leafly, a website that allows users to rate strains and dispensaries of cannabis.
Geoff Lewis, a Founders Fund partner, said he discovered Privateer when a friend with a California medical marijuana card used Leafly to find particular marijuana strains whose effects mitigated symptoms of an illness.
“I hadn’t thought at all about medical cannabis prior to her experience, but as a venture capitalist, I always have my investment cap on,” said Lewis, who first approached Privateer about a deal in 2013.
Privateer generated mainstream buzz in November when it funded Marley Natural, a brand of marijuana, with the family of late reggae singer Bob Marley.
The legal marijuana industry is estimated to be worth between $2 billion and $3 billion, West said, and to date, 23 states, including California, and the District of Columbia have legalized medical marijuana. Four states - Colorado, Oregon, Washington and Alaska - also allow recreational marijuana use.
“The entire year of 2014 has been a tipping point,” West said. “We’ve really seen dramatic growth in the industry, but also a lot of occurrences that make it clear that this is an industry that’s here to stay.”
Despite states’ efforts to legalize medical or recreational cannabis, its use is illegal under federal law. Though recent legislation bars the feds from interfering with state medical marijuana laws, an assistant U.S. attorney wrote in a court filing last week that the plant is a psychoactive, addictive drug that is not accepted as safe for medical use.
Those legal concerns - along with the drug’s social and political baggage - were factors that have kept venture capital at bay, insiders speculate. But with California voters likely to see a ballot measure to legalize recreational marijuana in 2016, more venture capital deals could be on the horizon.
Kennedy believes Founders Fund’s investment will give the financial world - even more conservative investors such as private equity firms and investment banks - greater leeway to look at the marijuana industry.
“A big part of it has been reputational risk. People are always concerned about their reputations,” said Lewis of Founders Fund. “We think a lot of the best investments seem a little bit out there when they’re first made.”
Lewis said he believes marijuana will be legalized at the federal level in due time, and when that happens, buyers will become attached to brand names, expanding the legal market.
In the meantime, Kennedy says Founders Fund’s move will show other investors they’re already behind the curve.
“They’re going to wake up in a panic and they’re going to say, ‘A bunch of smart people at Founders Fund have been looking at this industry for the past year and a half and made this investment,’ “ Kennedy said. “They will see it as a watershed event on the transition from the state of prohibition to a state of legalization.”
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Pubdate: Thu, 08 Jan 2015   Source: North Coast Journal (Arcata, CA)
Column: The Week in Weed   Copyright: 2015 North Coast Journal
Contact: letters@northcoastjournal.com   Website: http://www.northcoastjournal.com
Details: http://www.mapinc.org/media/2833   Author: Linda Stansberry   Note: Linda Stansberry is a freelance journalist from Honeydew.
WOMEN IN WEED
Trim bitches.
Grow hos. Potstitutes. If you know what those terms mean, you know that our county’s most prominent industry has what politicians call “a woman problem.” But it’s probably not the problem you think.
There’s something that raises our collective hackles about a woman gaining the favor of a rich man by dint of her beauty and youth.
Gold diggers, we call them: scorned bearers of an unearned status, threats to the basic building block of social harmony that is marriage, debasers of true affection.
Matrimony, after all, is a calling. Prostitution is a profession. The gold digger is one of our cherished societal tropes, and it’s little wonder Humboldt County is awash with lurid stories of women in leather boots and tight jeans who prowl the hills during the fall, searching for weed-rich sugar daddies.
When we talk about weed and women we don’t talk about the single mothers who trim during the fall so they can buy school clothes for their kids. We don’t talk about the pioneers - grandmothers now - who moved here in the ‘70s and scratched a living out of the hillside, praying that the sun would shine and CAMP helicopters wouldn’t darken the skies above their homesteads. We don’t talk about the fact that grow culture - for all of its inherent problems - celebrates egalitarian domestic partnerships where couples share the responsibilities of maintaining both a home and a family business.
We don’t mention that growing weed is one of the few careers that offer parents the economic choice of staying home to raise their children. We don’t talk about the women who are proficient in permaculture, homeopathy and botany, or the women who work their asses off to run scenes of their own so they can send their kids to college.
No, we talk about potstitutes, grow hos and trim bitches.
Bitches. Really, bitches?
Bitches are not humans: They’re holes. Bitches are interchangeable.
Bitches do not deserve consideration. Bitches can be bought and sold.
And that is the crux of our actual woman problem.
The majority of women in this underground industry are the mothers, grandmothers, farmers and college students mentioned above.
And a smaller but not inconsiderable number are being pimped, exploited, enslaved and raped. Reducing the role of women in weed to a slur - trim bitches - is really an elaborate system of victim blaming that benefits no one except predators and pathetic stand-up comedians who can’t write a set without one hand in their pants.
Because these issues often go unreported and unaddressed, it is impossible to get accurate numbers, but the exploitation of women in weed is so endemic that District Attorney Maggie Fleming made it a cornerstone of her election campaign.
Resources appear to be in even shorter supply than sympathy.
That, combined with the insular nature of grow culture and the remoteness of many scenes, makes helping victims a challenge.
“We’re not going to be able to go out and pick somebody up,” says Maryann Hayes Mariani, client services coordinator for the Humboldt Rape Crisis Center. “It wouldn’t be safe for them or for us. So when they call we often problem solve with them, and coach them on what to do if they can get to a more populated area.”
Seasonal workers are also uniquely vulnerable to financial exploitation. It’s not uncommon to hear stories of a summer’s worth of work gone unpaid, with no legal recourse for the victim.
If our instinct upon hearing these stories is to scoff and say that it was a risk they knew they were taking, do we hold the same standards for victims of sexual exploitation? Mariani says many of her clients feel as though they have nowhere to turn - and no social support.
While some victims are seasonal workers who ended up in a bad scene, others are children of grow culture, who were indoctrinated into its code of silence from a young age. It’s all well and good to say that a victim of rape, incest or assault should turn his or her assailant in to law enforcement, but what about when the assailant is a family or community member upon whom the victim might be financially reliant, in a culture that functions due to the unspoken agreement that nobody narcs, ever? What then?
“Even after they get them to safety, the terror stays with them for quite a while,” Mariani says, adding that victims often live in anticipation of being found and brought back to the scene they escaped. “They might go back because they can’t deal with the waiting and the fear. We don’t judge.
We have to respect their choice.”
Human nature dictates that we devote our attention to the visible and convenient, the small handful of anecdotes that reinforce what we already believe about the world.
Young men in big trucks, young women in tight jeans.
It’s a story as old as commerce itself.
Victims are often invisible and definitely inconvenient. More often than not, we mistake their silence for consent.
But the hour is growing too late to do that. Legalization is just around the corner.
What that really means for our economy and for our culture is a matter of great debate, but one thing is for certain: When the money and the silence and the fear are finally drained from grow culture, a lot of ugly things are going to get dragged out into the sunshine.
In time they’ll be sanitized and repackaged and sold as quaint reminders of a wilder time. And make no mistake: This wild time, this time of bootstrap entrepreneurs, modern-day homesteaders, young women in big trucks, young men staying home to raise their children, this time of heady economic optimism, is an extraordinary time to experience. We should be grateful we get to live through it. But none of that matters if we’re allowing the mothers, grandmothers, daughters, sisters and workers that comprise our beloved community to be reduced to a slur. None of that matters if we’re complicit in the exploitation of the powerless.
We say trim bitches, history will say women. We say trimmigrants, history will say migrant workers.
We say nothing, and history will say we picked the wrong side.
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Pubdate: Mon, 12 Jan 2015   Source: Los Angeles Times (CA)
Copyright: 2015 Los Angeles Times   Contact: letters@latimes.com
Website: http://www.latimes.com/   Details: http://www.mapinc.org/media/248
Author: Maura Dolan
JUDGE WILL WEIGH POT’S STATUS
For First Time in Years, Federal Jurist Will Rule on Constitutionality of Classifying Marijuana As a Dangerous Drug.
SAN FRANCISCO - In a rare examination of federal marijuana law, a U.S. judge in Northern California has decided to rule on the constitutionality of a 1970 act that classifies marijuana as a dangerous drug akin to LSD and heroin.
U.S. District Judge Kimberly J. Mueller took the extraordinary step of holding a five-day hearing on the question late last year, with final arguments scheduled for next month. Her ruling, based on testimony and thousands of pages of briefs, exhibits and declarations, is expected later this year.
Lawyers say the case out of Sacramento marks the first time in decades that a judge has agreed to hold a fact-finding hearing on the classification of marijuana as a Schedule 1 drug under the 1970 Controlled Substances Act. Mueller’s decision came in response to a pretrial defense motion in a prosecution brought by the federal government against alleged marijuana growers.
Attorneys for the defendants have argued that the federal marijuana law violates the Constitution’s guarantee of equal protection under the law and a doctrine that gives states equal sovereignty. In addition to maintaining that marijuana is safer than many non-regulated substances, the defense contends the federal government enforces marijuana law unevenly, allowing distribution of cannabis in states where it is legal and regulated by state law and cracking down elsewhere.
Prosecutors, who unsuccessfully opposed the factfinding hearing, have countered that Congress legally placed marijuana in Schedule 1, a classification used for drugs that have no medicinal purpose, are unsafe even under medical supervision and contain a high potential for abuse. In addition to marijuana, heroin and LSD, other Schedule 1 drugs include Ecstasy and Mescaline. Because of marijuana’s Schedule 1 status, federal restrictions make it difficult for researchers to obtain legal cannabis for study.
Zenia K. Gilg, a lawyer for the growers, said scientific understanding and public acceptance of marijuana have grown substantially since courts last examined the federal classification.  She cited the November election, when voters in Alaska and Oregon decided to join Colorado and Washington in making cannabis legal for recreational use. Most states already provide some legal protection for its use as medicine.
“It just shows that this country has recognized that marijuana is less harmful than, I would say, alcohol, and the law prohibiting it is absurd, particularly as it related to being up there with heroin and LSD,” said Gilg, a member of the National Organization for the Reform of Marijuana Laws.
She and other lawyers also have pointed to a provision in a spending bill signed by President Obama in December that bars the Department of Justice from funding actions that prevent states from enforcing their own laws on medicinal marijuana. Lawyers for the growers questioned in court documents how Congress could justify a law that says marijuana has no medicinal value while demanding that its distribution be free of federal interference.
But legal analysts said the court challenge remains a long shot. Efforts to remove marijuana from Schedule 1 have consistently failed. A ruling against federal marijuana law would apply only to the defendants in the case and almost certainly would be appealed. If the U.S. 9th Circuit Court of Appeals determined the law was unconstitutional, all the Western states would be affected.
Prosecutors said in a brief filed Wednesday that the evidence presented in the hearing at most “established that there is some dispute among doctors as to whether marijuana is medicine.”
Mueller, a Clinton appointee, has given few indications of how she might rule. Lawyers said the fact that she agreed to hold a fact-finding hearing was itself a victory for marijuana activists.
Despite the possible consequences and rarity of such a hearing, the challenge has received little public attention. A lawyer who writes a blog for the federal court’s Eastern District of California posted links to daily coverage of the testimony by theleafonline.com, a digital newspaper for “the cannabis community.” Reports by the pro-marijuana website portrayed the prosecution as having faltered.
Alex Kreit, a Thomas Jefferson School of Law professor who specializes in drug issues, said a ruling overturning the federal classification of marijuana would be a “surprise at the least.”
“But the fact that there was a hearing tells me there is some chance of this succeeding,” Kreit said. “It is just exceedingly unlikely that a federal judge would set aside several days for a hearing on a question they thought was open and shut.”
Santa Clara University Law Professor Gerald Uelmen, who has defended medical marijuana defendants, also expressed surprise that a judge agreed to hold an evidentiary hearing on the question. He said courts have routinely ruled against such challenges.
Marijuana activists noted that federal judges, appointed for life, often take bold stands. They point to a decision by an Orange County federal judge last summer declaring California’s death penalty system unconstitutional. The jurist’s ruling is now on appeal. A federal district judge’s ruling also led to the demise of California’s ban on same-sex marriage. Even if the defendants in Sacramento lose, a ruling that was critical of the government’s classification of marijuana could become ammunition for future battles.
During the October hearing, witnesses for the defense testified that marijuana has many medical benefits and less potential for harm than alcohol, tobacco and many prescription drugs. Declarations by defense witnesses said anti-marijuana laws were spurred by racism and that marijuana law continues to be enforced disproportionately against African Americans.
An expert for the prosecution testified that marijuana use as a teenager has been linked to cognitive changes and that cannabis is associated with psychotic disorders.
In written arguments summarizing the hearing, the defense said the “critical inquiry” for the court was whether marijuana has any medical benefits.
“The evidence is overwhelming and irrefutable, cannabis has remarkable medicinal qualities which have been known and applied throughout history,” Gilg and co-counsel Heather L. Burke wrote for the defendants.
The prosecution, citing 40 years of court rulings, countered that the law must be upheld as long as it has some justification. The only question before the court is whether the Controlled Substances Act was a rational means of addressing a legitimate government interest, the prosecution said.
“In 2013 alone, more than 29,000 people checked themselves in for marijuana substance abuse treatment just in California, and more than half of them were teenagers,” Assistant U.S. Atty. Gregory T.  Broderick said in the brief filed Wednesday.
“Given the state of the science, it is clear that treating marijuana as a controlled substance is rationally related to legitimate public health objectives.”
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Pubdate: Sat, 10 Jan 2015   Source: Press Democrat, The (Santa Rosa, CA)
Copyright: 2015 The Press Democrat   Contact: letters@pressdemocrat.com
Website: http://www.pressdemocrat.com/   Details: http://www.mapinc.org/media/348
Author: Glenda Anderson
MENDOCINO COUNTY OFFICIALS SURPRISED BY TRIBE’S PLANS FOR POT FARM
News that a Mendocino County Pomo tribe is building a $10 million indoor marijuana-cultivation facility on its rancheria just north of Ukiah has been met with a mix of surprise, concern and a sense it was inevitable as pot growing becomes increasingly common and legal.
“The tribes are just getting out ahead of the game” in preparation for the eventual legalization of marijuana for all uses in California, Mendocino County Supervisor Dan Hamburg said.
“Legalization is coming. That’s where we’re headed,” said Dale Gieringer, state coordinator for the National Organization for the Reform of Marijuana Laws. Medical marijuana has been legal in California for 18 years and, after several failed attempts, a ballot measure aimed at legalizing recreational use is widely expected to pass in 2016. About two dozen states have decriminalized or legalized marijuana in some manner.
Many thought American tobacco companies would take the lead with large-scale operations and attempt to monopolize the cannabis business, Hamburg said.
“It looks like it’ll be the tribes,” he said.
The Pinoleville Pomo Nation has contracted with Colorado-based United Cannabis and Kansas-based FoxBarry Farms to grow thousands of marijuana plants in greenhouses on its 99-acre rancheria. FoxBarry, which also invests in tribal casinos, is financing and managing the project.
Other venture capitalists are getting into the pot business. Founders Fund, a firm known for backing companies like Facebook, has invested undisclosed millions in Privateer Holdings, a Seattle private equity firm focused on marijuana.
Pinoleville is believed to be the first California tribe to build a large cannabis-growing facility, but at least two more are planned elsewhere in the state by the same corporations responsible for the Ukiah operation. They have not divulged the locations, other than they would be in Central and Southern California.
The Ukiah operation, which will feature a 110,000-square-foot facility on nearly 2.5 acres, is scheduled to open in February, representatives of the groups said. They did not say exactly where the greenhouses would be, but only about a third of the rancheria is held in federal trust, which frees the companies from following all local and most state regulations.
The lack of accountability is what concerns Mendocino County officials.
“They can do whatever they want,” Mendocino County Chief Executive Officer Carmel Angelo said. The tribe will be exempt from the county’s zoning ordinance aimed at controlling the number and locations of marijuana plants grown for medical use. In addition to the rancheria property, the tribe also owns 100 acres near Ukiah High School, for which it is seeking trust status.
The tribe did not notify county officials of its plans, so news of the pot-growing facility caught them off guard.
“I’m a bit taken aback,” said county Supervisor Carre Brown. She noted that many of the tribes consult with the county about development projects as a courtesy, even though they’re exempt from its planning process.
Hamburg said he also didn’t know about the project but has expected something like it to eventually happen.
“None of this really surprises me,” he said. “I just wish there was more we could do about it.”
Hamburg said he’d prefer that the county have some control over marijuana production and the ability to collect taxes on the product.  He’d also prefer to see smaller, outdoor growing operations.
“My heart is really with the small grower community,” Hamburg said.  He also believes that outdoor gardens create fewer environmental impacts than indoor farms.
“From an ecological perspective, that does not sit well with me,” Hamburg said of the tribe’s operation.
County officials also worry that other tribes will follow suit and cannabis-growing operations will proliferate, much as casinos have.
But it’s still too soon to tell whether federal officials - who continue to consider marijuana illegal - will allow such large-scale production to take place, even though they appeared last month to give the tribes the green light, Gieringer said.
In a memorandum produced at the request of tribes seeking clarification on the marijuana issue, the U.S. Department of Justice essentially said it’s up to tribes, as sovereign nations, to decide whether marijuana is legal or not on their lands.
But the memorandum also states that there’s nothing preventing U.S.  authorities from enforcing federal law in “Indian Country.” And, in recent years, federal agencies have cracked down on large-scale pot production operations in the Bay Area.
“I wouldn’t be surprised if the Department of Justice took an interest” in the tribe’s operation, Gieringer said.
Neither state nor U.S. Department of Justice officials could be reached for comment Friday.
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Pubdate: Thu, 08 Jan 2015   Source: Boulder Weekly (CO)
Copyright: 2015 Boulder Weekly   Contact: letters@boulderweekly.com
Website: http://www.boulderweekly.com/   Details: http://www.mapinc.org/media/57
Author: Leland Rucker
HONORING COLORADO’S EARLY CANNABIS ENTREPRENEURS
There’s a lot of talk these days about cannabis and big business.  Corporate entities, cigarette companies and other greedy, moneyed interests, the reasoning goes, are poised to swoop in and kill off the local folks who built the cannabis industry and turn it into just another corporate product. The Walmartization of Cannabis.
It’s something that Tim Opsal, one-third of a cannabis mobile app company called BestBuds, has been thinking about as Colorado begins its second year of retail cannabis sales for adults. Opsal has just published Best Buds of Colorado 2014: Pioneers of Legalization, which casts an already somewhat historic light on some of Colorado’s cannabis pioneers.
The book includes interviews and stories about some of the early dispensaries that opened in Denver as legalization became reality, why the owners got into the business, how they developed their companies and built their product lines, their dreams, failures and successes. Growers talk about how and why they come up with new strains and why they love the business they’re in. There are plenty of color photos of many of the state’s popular strains, a wealth of information about the state’s legalization efforts as well as an appreciation for those who were there at the beginning.
“The real inspiration behind the book was to honor the dispensaries that have brought about legalization from a recreational standpoint,” Opsal says. “They are folks we really felt encapsulated the entrepreneurial spirit that the marijuana industry was built on. As we got to know them better, we learned their stories and wanted to share them in a physical format rather than a digital platform.”
What Opsal realized was that the Colorado cannabis business was started mostly by small mom-and-pop entrepreneurs.
“They have a passion for the plant and wanted to see it happen here,” Opsal says. “They go through constant changes and are taking the lumps in what is still an experimental market. Without these folks making the effort and paving the way, there would be no industry. We thought we’d give them a little honor and tribute. If it does go to big business, I don’t want them to be forgotten.”
Opsal started the BestBuds digital platform on Jan. 1, 2014, with partners Ronnie Wagman and Jordan McHugh. Opsal and Wagman had been friends in high school before moving here from Madison, Wis. “I wanted to work with websites and with maps,” Opsal says. “We enjoyed marijuana, and we saw this as an opportunity.”
The BestBuds app uses a mapping system with picture-based menus that allows users to find dispensaries based on the quality of their product, with a couple of features that distinguish it from Weedmaps or Leafly, the two most popular national mobile cannabis apps.
“We learned from users, and we found that most were connoisseurs and wanted the best rather than the cheapest marijuana,” he says.
Anyone can access BestBuds at bestbudsapp. com, which allows users to search by specific strains or products and find dispensaries that carry those products. The iPhone app offers picturebased menus and allows for a rewards system. It’s much like a coffee-shop punch card, only this one resides inside your phone.
The BestBuds app also offers a “Be Our Bud” program, which allows dispensary users and owners to send and receive direct personal messages.
“Many of our customers use this direct messaging system to send out menu updates and deals to their customers,” Opsal says. “We are currently the only mobile app on any platform that allows for two-way communication between dispensaries and their customers.”
Every dispensary in Colorado is listed on the website, but only the 50 signed up with the service have full profiles with menu items that are searchable. And BestBuds recently partnered with The Cannabist, which now uses the BestBuds map on its website of Colorado dispensaries.
Opsal expects 2015 to be busy: “We will bring on more support help to assist us with customer service and maintenance of customer accounts.  From a technology standpoint, we plan to release an Android version and a new version of the iPhone app optimistically in the second quarter of this year.”
Opsal is working on an e-book version, but Best Buds of Colorado 2014 is currently available as a hard-cover book.
“We only have hard copies available online and on Amazon,” he says.  “It is also retailed at all dispensaries and some record stores. The Boulder Book Store picked up a few copies.”
Opsal says current plans are to continue expanding throughout Colorado.
“We’re starting in Denver and looking to Colorado Springs, Boulder and Fort Collins. We are slowly expanding, but we’re a three-man band. Scalability and remaining customer-centric is a concern. But we really have our eyes and hearts set on continuing to support our Colorado dispensary clients. We have found success in that we’re a Colorado company.
Our customers have a face to go with the service. At the end of day, people want good service.”
You can hear Leland discuss his most recent column and Colorado cannabis issues each Thursday morning on KGNU.
http://news.kgnu.org/category/features/ weed-between-the-lines/
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Pubdate: Fri, 09 Jan 2015   Source: Wall Street Journal (US)
Copyright: 2015 Dow Jones & Company, Inc.   Contact: wsj.ltrs@wsj.com
Website: http://www.wsj.com/   Details: http://www.mapinc.org/media/487   Author: Dan Frosch
IN COLORADO, POT LEGALIZATION FAILS TO MATCH PREDICTIONS  OF SUPPORTERS
Forecasts of Big Tax Windfall, Dire Social Consequences Don’t Prove
Entirely True
DENVER - Before Colorado became the first state to allow marijuana for recreational purposes, supporters boasted that legalization would generate a sizable tax windfall, while opponents warned it could have serious social consequences.
Just over a year into the state’s experiment with sanctioning pot sales to adults 21 and over, neither prediction is proving entirely true. Marijuana so far hasn’t been the boon or bane that many expected, offering potential lessons to other states considering legalization.
The office of Colorado Gov. John Hickenlooper last February estimated the state would haul in nearly $100 million in revenue from recreational marijuana taxes in the fiscal year that began in July.  But sales have been slower than expected””due in part to a 25% tax rate that experts say has steered potential users toward medical marijuana, which is cheaper.
State economists revised their own, separate forecast on Dec. 22, estimating that recreational pot sales would generate $58.7 million in tax revenue for the fiscal year, down from $67 million.
“It was an educated guess, because we were dealing with a federally illicit product,”  said Larson Silbaugh, a senior economist with the Colorado Legislative Council.
Meanwhile, fears that legalization would trigger a marked jump in teen drug use also don’t seem to have been realized. Fewer high-school students reported using marijuana in 2013 than 2011, according to a survey released in August by the Colorado Department of Public Health and Environment.
After Colorado voters approved a landmark measure legalizing pot in 2012, the drug became legal for adults in the state to possess and grow in 2013, though retail sales didn’t begin until the start of 2014.
“All of the concerns you had about kids and spikes in uses, none of that materialized,”  said Christian Sederberg, a partner with Vicente Sederberg, LLC, a Denver law firm that represents the marijuana industry.
Washington became the second state to allow recreational pot sales last summer, and Oregon and Alaska approved legalization measures in November. Activists are pushing legalization in several other states, including California, where they aim to put a measure on the ballot in 2016.
To be sure, there have been problems with marijuana safety in Colorado, especially with edible forms of the drug, which the state is struggling to regulate.
As of Nov. 30, the number of calls to the state’s Rocky Mountain Poison and Drug Center by people experiencing adverse effects from marijuana nearly doubled, to 202, compared with the whole of 2013, according to the latest available data.
Several Colorado doctors recently reported in the Journal of the American Medical Association that local hospitals had seen an uptick in patients who became sick from ingesting too much marijuana, particularly children.
According to a recent federal survey, marijuana use among Coloradans age 12 and over went up slightly between 2011 and 2013, to 12.7% from 10.4%.
“oeThis is exactly what we were worried about,”  said Kevin Sabet, director of the drug policy institute at the University of Florida, and co-founder of a group, Smart Approaches to Marijuana, that opposes legalization.
Neighboring states are also complaining that Colorado marijuana is flooding their jurisdictions. Nebraska and Oklahoma last month sued Colorado in the U.S. Supreme Court, claiming that legalization has resulted in more interstate drug trafficking and violates federal law.
In some ways, however, marijuana has been woven into everyday life in Colorado, as more than 200 highly regulated retail businesses sell their wares around the state.
State lawmakers and economists say pot is indeed contributing to Colorado’s economy, spurring tourism and the conversion of blighted warehouses into marijuana grow-houses.
According to state figures, nearly 16,000 people are now licensed to work in the marijuana industry in Colorado. And a study conducted last year for the state by the Marijuana Policy Group, a Colorado research firm, found that tourists accounted for nearly half of recreational sales in the Denver area and 90% in popular mountain communities.
Warehouses in Denver are now selling for $75-$100 a foot, up from $40-$60 a foot last year, according to Tim Shay, a senior vice president at Colliers International brokerage firm, who noted that the pot industry was the driving force behind the price surge.
On a recent day in the Denver suburb of Edgewater, several customers milled about Live Green Cannabis, eying an expansive display of pot strains like “Star Nebula”  and “Sour OG.”
“As an industry, we’re excited that we’re setting a model for the rest of country,”  said Brooke Gehring, a former commercial banker who owns Live Green and several other pot stores around Colorado. She noted that since recreational marijuana sales began Jan.  1, 2014, Live Green has seen up to a tenfold increase in daily customers, with sometimes as many as 500 a day.
While tax revenues may have been less than originally forecast, experts note that a number of municipalities chose to wait before allowing recreational sales, or banned them outright, which ended up affecting tax collections. Collections have generally been increasing since last January, according to the state’s department of revenue.
Some lawmakers initially against legalization have since committed themselves to making it work, including state Sen. David Balmer. The Republican from Arapahoe County said many of the concerns voiced by critics of marijuana legalization haven’t been realized, and the drug is proving to be a viable economic contributor.
“I just had the same knee-jerk opinion as all of the other elected officials,”  he said. “But once I toured the dispensaries and the warehouses, and I saw the dramatic regulatory framework that has been set up, I wanted to help the business community succeed.”
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Pubdate: Fri, 09 Jan 2015   Source: Denver Post (CO)
Webpage: http://drugsense.org/url/D02nYJAc   Copyright: 2015 The Denver Post Corp
Contact: openforum@denverpost.com   Website: http://www.denverpost.com/
Details: http://www.mapinc.org/media/122   Author: Steve Raabe
MARIJUANA EXPERTISE FOR SALE
United Cannabis Signs Consulting Deal to Grow Medical Pot on Tribal Lands.
Denver-based United Cannabis Corp. is proposing to team with Native American tribes in California to grow and manufacture medical marijuana products.
United Cannabis has signed a consulting and licensing deal with a company that will build up to three cultivation and processing facilities on tribal lands.
Fox Barry Cos. LLC, a firm that helps tribes with economic development projects such as farms and casinos, has pledged $ 30 million to develop the facilities. Fox Barry, in turn, will have exclusive distribution rights for United Cannabis products in California.
“We will bring our proprietary products and consulting expertise out to the tribes in California,” said Chad Ruby, chief operating officer of United Cannabis.
Among other products, United develops pot strains with varying ratios of THC - the psychoactive ingredient that makes users high- and non- psychoactive cannabidiol, or CBD, which has purported medical benefits.
Ruby said that “active” and “inactive” products would be developed at the tribal facilities. Products would be shipped to and sold at licensed medical marijuana dispensaries in California.
The first proposed grow and manufacturing facility under the United Fox Barry deal would be on Pinoleville Pomo tribal land in northern California’s Mendocino County. Future facilities would be built in central and southern California.
The licensing agreement calls for United to receive $ 200,000 in prepaid royalties and 15 percent of net sales.
The U. S. Justice Department said last month that Indian tribes can grow and sell marijuana on their lands as long as they follow the same federal conditions laid out for states that have legalized the drug.
Ruby said the new venture was not a direct result of the DOJ ruling.  However, he said that federal approval gives the project a measure of protection in a state where some dispensaries and grows have been raided and where regulations vary from community to community.
United last year announced the creation of the Jamaica-based Cannabinoid Research & Development Co. Ltd. with a mission to “help restore the purity of ( Jamaican marijuana) strains and standardize the breeding process.”
Jamaica has drafted legislation to decriminalize marijuana, a cultural icon of the Caribbean island, even though its use and cultivation is illegal.
In a recent filing with the U. S. Securities and Exchange Commission, publicly traded United reported that in the first nine months of 2014 it had revenue of $ 91,113 and expenses of $ 1.2 million, resulting in a loss from operations of $ 1.1 million.
United’s stock closed Thursday at 70 cents. In the past year, it has traded in a range of 6 cents to $ 10.50.
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Pubdate: Sun, 11 Jan 2015   Source: San Francisco Chronicle (CA)
Webpage: http://drugsense.org/url/D16BISP1   Copyright: 2015 Hearst Communications Inc.
Contact: http://www.sfgate.com/chronicle/submissions/#1   Website: http://www.sfgate.com/chronicle/
Details: http://www.mapinc.org/media/388   Author: Brooks Mencher
Bookmark: http://www.mapinc.org/hemp.htm (Hemp)
MALIGNED AND BANNED
The American Comeback of Industrial Hemp
After serving nearly 80 years on narcotics charges, hemp is back, semi-legalized in the 2014 Farm Bill.
Its new age is a chemical renaissance. Experimental medicines extracted from hemp seed oil will treat epilepsy, migraine headaches, glaucoma, and diabetic and other nerve pain; there may even be applications for multiple sclerosis and Parkinson’s disease. The plant’s rough outer bast fibers, formerly waste, can be used in super-capacitors to store energy for electronic devices; these cooked carbon nanosheets, at least as efficient as current materials including graphene, were unveiled at the annual exposition of the American Chemical Society, held last summer in San Francisco.
More, its fibers and the cellulose-rich stem core are already producing high-impact car doors, higher-efficiency housing insulation and other building materials. And then there are cosmetics, soaps, oils, high-protein food and high omega-3 dietary supplements.
But as brilliant and economically viable as its future might be, humankind’s most ancient cultivated plant has never had an easy time in America, and there’s no reason to believe that its return is going to be accompanied by a red carpet. It’s back and it’s legal, but chances are, as in Colorado, farmers can’t legally get the seeds.  You, as a citizen, can’t legally grow it. It would be easier to grow medical marijuana, hemp’s twin (same species, Cannabis sativa linnaeus).
The Drug Enforcement Agency, a policing arm of the U.S. Department of Justice, remains an anti-hemp force to be reckoned with - despite federal rules (in the Farm Bill and the Dec. 9 Congressional budget bill that cut DOJ enforcement funding) that have purportedly removed it from hemp oversight. Nineteen states have declared hemp farming to be legal, but state officials can’t guarantee there will be no federal raids. These contradictions are part of hemp’s new world: The promise of a brilliant future amid political and regulatory uncertainty.
Re-establishing hemp as a viable American industry will take
rebuilding, piece by piece, a working infrastructure that would include contract farming, growers’ associations, trade lines, material transportation, research and development and niche manufacturing, and, more importantly, further legislation fully guaranteeing its legal status as a non-narcotic.
Legality and reality
How could a plant, whose use and cultivation dates back more than 12,000 years, be so heedlessly shelved in the first place? The answer: A bad rap as a perceived narcotic. Hemp’s role as an American pariah has roots far deeper than the Controlled Substances Act of 1970, which listed it, with marijuana, as a Schedule I narcotic in the company of heroin, crack and meth. It predates the Marihuana Tax Act of 1937, which defined hemp and marijuana as the same plant (this iron link was only broken in February last year, in the Farm Bill).
Hemp was the victim of anti-drug sentiments dating back more than 150 years. Its untouchable status derives from the fallout of the Civil War, when an estimated 400,000 maimed soldiers returned home addicted to a new wonder drug, injectable morphine. Soon, opiates became the American physician’s panacea. Abuse spread, and it became America’s new bogey man. Opium dens were banned in San Francisco, smoking-grade opium was banned nationally by an act of Congress, and the Harrison Anti-Narcotics Act of 1914 restricted what was left. Soon the Temperance Movement became active, applying to liquor the same strategy of fear that had followed opium, and Prohibition was realized in 1920. Successful anti-liquor evangelicals then turned their efforts to a great new evil, “marihuana,” and ushered in hemp’s narcotic age. The anti-cannabis, often-racist propaganda (targeting Hispanics and urban blacks) that began in the 1930s is unparalleled in America for its duration, orchestration and intensity. Hemp didn’t have a chance.
Alex White Plume
But by the 1990s, American consumers began buying imported hemp seed and oil products such as soap, cosmetics and food additives. Perhaps the most prominent are Dr. Bronner’s soap products, made in America from imported, processed hemp. There was a market, after all; there was a demand. But there was no domestic farming or raw processing because of the Controlled Substances Act. Hemp cloth and fiber were imported from China and Europe, and Canada supplied the seed and oil products, already processed.
By 1998, the potential market seemed attractive to Alex White Plume and the Lakota tribe on the Pine Ridge Reservation in South Dakota.  After two false starts, their 2000 crop was planted on the 132nd anniversary of the Treaty of Fort Laramie, which guaranteed Lakota sovereignty, farming, crop choice, and, in White Plume’s mind, the right to grow super-low THC industrial hemp without Drug Enforcement Administration approval. A harvest ceremony was planned, handwritten invitations were written and mailed, including to the U.S. attorney.  And on Aug. 24 that year, Alex White Plume watched, with an M-16 to his head, as 30 agents from the DEA, FBI and U.S. Marshals Service ripped out four months of his work - an acre and a half of industrial hemp. “They came and stole it,” he said.
In 2001 no one on Pine Ridge had to plant hemp. The DEA’s eradication technique had spread enough seed for a crop. This time, White Plume’s little brother, Percy, supervised the farming. And this time, again, the DEA swept in and cut and took the crop.
And they scattered seed in doing so. The third year, White Plume’s sister, Ramona, supervised. It grew well and 3 acres were harvested.  And then the DEA seized the yield. The crop was valued by Alex White Plume at about $20,000, a very large sum in one of America’s highest poverty regions.
The White Plumes were tried in civil, not criminal, court. In 2006 the Eighth Circuit Court of Appeals ruled against them. A federal injunction bans all three siblings from ever growing any kind of cannabis again. Can the ban be lifted?
“I think I used up all those attorneys,” Alex White Plume said.
State sovereignty
But the decision against the White Plumes also signaled the dawn of sovereignty efforts by states. By 2013, nine states had approved their own version of law and declared hemp to be separate from marijuana - and legal - despite the federal Controlled Substances Act. Their rule was this: Hemp, with a THC level of 0.3 percent or less, was legal. Marijuana, with a THC level above that, would still be under the Controlled Substances Act. It was mutinous. Eleven other states passed legislation to lay the groundwork for a new hemp industry that could not yet legally exist.
As public sentiment grew, the federal government slowly took notice.  On Feb. 7, 2014, hemp emerged from the shadow of its narcotic exile and became legal once again, albeit with significant restrictions.  The Farm Bill, signed by President Obama, supplanted the Controlled Substances Act and separated hemp from marijuana for the first time since the Marihuana Tax Act of 1937 - though only under the auspices of state-run pilot programs. The critical 0.3 percent THC level adopted by mutinous states was now the federal threshold. But for any non-sanctioned farming, hemp remains a Schedule I drug, and growing it is still a federal offense.
By the time the landmark Farm Bill was signed, 18 states had declared hemp legal, 33 states had introduced hemp farming legislation and 22 had passed other various pro-hemp bills.
The other cannabis, marijuana, also made enormous strides: It is considered medically legal in 23 states, including California, plus the District of Columbia; Colorado, Washington, Alaska, Oregon and the District of Columbia have legalized its recreational use.
Though hemp’s path to legalization is the result of a successful popular uprising that gained the support of key senators and congressmen, it was very likely pushed along by the simple passage of time: The dying out of the World War II generation, influenced by waves of anti-cannabis propaganda book-ended by the Marihuana Tax Act of 1937 and the Controlled Substances Act of 1970; and the coming into power of Generation X (President Obama), the Millennial generation (his voting bloc) and Baby Boomers (his Cabinet).
Hemp’s detractors
While hemp’s new American future is bright, its political life remains chaotic. Not everyone, it appears, is on board. Its rocky road back into American culture was apparent, and confidence in the new hemp law was so tentative that on the eve of the Farm Bill’s passage, the Colorado Agriculture Department warned potential pilot-program farmers of the uncertainties they would face. The agency said that: Although state research, according to the Farm Bill, isn’t subject to the Controlled Substance Act or the DEA, hemp seed could not be imported across state lines without violating the act; federally managed hemp crop insurance could endanger existing farm loans; and banks may be hesitant to get involved in hemp-farming loans (much as they fear handling the business accounts of growers of state-legal medical marijuana) for fear of federal raids, audits and shutdowns.
The Farm Bill passed after years of discussion and failure. But where was the USDA, its most likely proponent? In 2000, when Alex White Plume planted his first successful hemp crop, the USDA’s research branch issued its notorious hemp-damning report, “Industrial Hemp in the United States: Status and Market Potential.” In it, the USDA concluded there was little or no viability in a U.S. hemp industry.  Among a handful of death-knell challenges that hemp would find in the United States, hemp markets here “are and will likely remain small, thin markets. ... Uncertainty about the longrun demand for hemp products and the potential for oversupply discounts the prospects for hemp as an economically viable alternative crop for American farmers.”
The study was made at the request of then-drug czar Army Gen. Barry McCaffrey of the Office of National Drug Control Policy.
This is quite the opposite of current thinking, expressed by Hemp Industries Association Executive Director Eric Steenstra: “We see hemp becoming a standard rotation crop, for example in Kentucky.” Hemp Inc., a leading force in the nascent industry, expects a 50,000acre North Carolina crop in 2015.
The study faded into obscurity, and the USDA hasn’t tackled the issue again. Nevertheless, it’s Steenstra’s belief that the agency is “coming around on this topic.”
“The report has been long discredited ... and the USDA appears open to hemp, supportive, and there may be ways (it will become involved) in the future.” Very likely, financially.
The DEA
Still missing from hemp’s fan list is the Drug Enforcement Agency.  Kentucky, anxious to start its hemp research program as authorized by the Farm Bill, ordered 250 pounds of certified hemp seed from Italy shortly after Obama signed the bill. The Drug Enforcement Agency claimed that a DEA application was required, and promptly seized the seeds en route. Kentucky challenged the issue in court.
“The federal judge started as a sort of mediator,” said Patrick Goggin, co-counsel for Hemp Industries Association, which was involved in the case. “Finally, the DEA capitulated on the permit to farm hemp, but maintained authority over the importation of seed.” The agreement isn’t formal, but it will provide a working structure for control during hemp’s initial reintroduction.
But does the DEA have legal jurisdiction at all? The Farm Bill places pilot program policing in the hands of state departments of agriculture or state university systems, and the DEA’s parent, the Department of Justice, has had its hemp and medical marijuana policing funds restricted by Congress.
“It’s our position that the DEA has no authority,” Goggin said, “but the object was to get the seed in the ground” in time for the growing season. The bargain was struck. The seeds were released after the agreement, but Goggin noted, “I do not feel confident in the DEA.”
The following month, the DEA again seized hemp seed bound for the newly legalized pilot programs; this time it was bound for Colorado from Canada, where supervised hemp farming has been legal since 1998, after four years of pilot programs. Colorado’s law encourages hemp farming under state license, and the state issues research and development permits to individuals. No problem there, but farmers have to get seed and there’s no seed in the state. The import question has been skirted there by working under a sort of “don’t ask, don’t tell” system: If farmers can get seed, they can grow it under the program. The DEA, however, is like the fox outside the fence. As it stands, the federal agency will be working with Colorado, California (this year) and other states regarding seed acquisition.
After the seizures, the association attorney Goggin said, “We want to remove jurisdiction from the DEA; it inhibits investment for fear of prosecution.”
After two-handed dealing for more than a decade, and apropos to the White Plume family’s efforts to grow hemp in defiance of federal control efforts, who can wholly trust the Department of Justice’s announcement in December, declaring that Indian tribes located in marijuana-legal states can now grow and sell marijuana on their lands while warning, in the same breath, that marijuana remains illegal under federal law? The writ is the second rehash of the “Cole memo,” an August 2013 advisory to U.S. attorneys on pot enforcement in light of new state laws. Deputy Attorney General James Cole pushed for enforcement that focused on cases involving minors, gangs, guns, interstate commerce, piggybacking other drugs in marijuana dealing, drugged driving and possession or growing marijuana on federal land.  The inference is that other cases of general use could slide, though nothing “precludes investigation or prosecution.”

However, a rehash of the memo in February 2014, cautions at length about money laundering and banking - a chilling effect already noted by those involved in hemp pilot programs.
Alex White Plume, whose dealings with federal authorities cost him his ranching livelihood half a generation ago, sees progress in the decree, though at present it won’t apply to South Dakota, which has no state law legalizing marijuana.
“For the Native Americans, it has always been an issue of tribal sovereignty,” he said. “They (Congress and the Department of Justice) are trying to acknowledge the treaties, and I appreciate the attorney general in this. We feel that marijuana could be used medically to address alcoholism, for example, brought on by conditions of poverty.”
Unlike White Plume (and unlike the Pinoleville Pomo tribe near Ukiah, who last week announced a large indoor medical marijuana project), Oglala Sioux Tribal President John YellowBird-Steele sees no benefit in growing marijuana. He was involved in passing an ordinance declaring hemp legal on Pine Ridge in 2000 - an ordinance that was key to White Plume’s federal disobedience that year - and said earlier this month that hemp still has a viable future at Pine Ridge.
Hemp has a viable future nationwide as well, including California.  The ancient plant can adapt, through selective breeding, to many environments; this is part of its history with humankind. As the Marihuana Tax of 1937 and the Controlled Substances Act of 1970 fade into history, and legal inconsistencies are overcome through new legislation if not outright disobedience, Cannabis sativa linnaeus is poised, once again, to become America’s “billion-dollar crop” - a crop in need of an industry.
HEMP’S AMERICAN CENTURY
1914: The Harrison Anti-Narcotics Act is passed. Mandated transporters, sellers and possessors of narcotics to pay a tax and keep records for the Internal Revenue Service of the Treasury Department. The first restriction-by-taxation act.
1916: USDA Bulletin 404 urges use of hemp paper due to the rapid cutting of U.S. forests for pulp.
June, 1930: Federal Bureau of Narcotics established within the Department of the Treasury; tasked with drug enforcement. Prohibition enforcer Harry J. Anslinger appointed director; he initiates a lifelong battle against marijuana and hemp: “To legalize marijuana would be to legalize slaughter on the highway,”
1937: Marihuana Tax Act, restricting cannabis through taxation and
IRS (Treasury) mandated record-keeping, using 1914 Harrison Act
strategy of restriction through taxation
1937: Anslinger’s “Marijuana, Assassin of Youth” published
1938: Canada bans hemp production
1941: Henry Ford unveils a car with parts made from hemp that runs on hemp ethanol
1942-1945: Hemp for Victory campaign, in which U.S. overlooks
anti-hemp laws to produce rope for the war effort
1957: America’s last hemp producer, Rens Hemp Company of Wisconsin,
shuttered: oppressive operating regulations
1967: Senate approves international treaty ratifying the Single Convention on Narcotics, forcing a ban on marijuana.
1968: Federal Bureau of Narcotics, in the Treasury Department, is absorbed by the Bureau of Narcotics and Dangerous Drugs, part of the Department of Justice
1970: Comprehensive Drug Abuse and Control Act of 1970 becomes law, Nixon administration. Expanded federal law (1937 Act), keeping hemp within the legal definition of marijuana, making both Schedule I narcotics
1971: President Nixon declares “war on drugs,” June 17, creates drug abuse prevention office
1973: Bureau of Narcotics and Dangerous Drugs is absorbed along with five other drug-related federal agencies or departments into the DEA,
Drug Enforcement Administration, under the DOJ
1996: California approves Prop. 215 legalizing, regulating medical marijuana
1998: Canada legalizes controlled hemp cultivation
1999: North Dakota becomes first state since 1937 to legalize and set
regulations for cultivating hemp
2000: DEA wins case against New Hampshire Hemp Council, can still
prosecute hemp producers, hemp remains Schedule I narcotic
2004: DEA loses case against Canadian hemp imports to U.S., which it seized in 1999, claiming that trace amounts of THC made hemp-food imports narcotic
2002: California Gov. Gray Davis vetoes state hemp farming bill
2006, 2007, 2008, 2011: California hemp farming act vetoed by Gov.
Arnold Schwarzenegger
Sept. 27, 2013: Gov. Jerry Brown signs California bill by state Sen. Mark Leno allowing farmers to grow hemp when the federal government finally gives the green light
2014: Obama signs the Farm Bill
Hemp isn’t marijuana
Hemp and marijuana are cultivars, or selectively bred variations of the same species, Cannabis sativa linnaeus. They are visually indistinguishable, hence their dual listing in the Marihuana Tax Act of 1937 and their definition as a Schedule I narcotic in the Controlled Substances Act of 1970.
The only difference between the two is the level of the active psychotropic chemical delta-9 tetrahydrocannabinol, or THC. In industrial hemp, it is usually (and now, legally) 0.3 percent or less. In marijuana, it ranges between 10 and 30 percent. A second cannabinoid, cannabidiol or CBD, is also produced in both variants, and it counteracts the effects of THC. CBD has potential medical applications, especially regarding epileptic seizures. Cannabinoids, unique to cannabis plants, may number 60 or more, but THC and CBD are the major players.
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Pubdate: Wed, 07 Jan 2015   Source: Virgin Islands Daily News, The (VI)
Copyright: 2015 Virgin Islands Daily News   Contact: dailynews@vipowernet.net
Website: http://www.virginislandsdailynews.com/   Details: http://www.mapinc.org/media/3486
Author: Jeffrey Stinson, Stateline.org
STATES FIND YOU CAN’T TAKE LEGAL POT MONEY TO THE BANK
WASHINGTON - The nation’s rapidly expanding legal marijuana industry, which operates in 23 states and the District of Columbia, enters a new year facing a multibillion-dollar question: What to do with all the millions in cash it collects each week?
Nearly all of the nation’s banks refuse to take money from marijuana sales or offer basic checking or credit card services to the industry for fear they’ll be shut down by federal authorities, for whom marijuana remains an illegal narcotic. The banks won’t do business with growers, processors, retail shops and medical dispensaries, or with their employees and contractors.
“It’s the biggest problem we have,” said Taylor West, deputy director of the National Cannabis Industry Association, many of whose 800 members are awash in $5, $10 and $20 bills and change with no bank to put them in.
The abundance of cash makes the country’s 2,000 retail shops and medical dispensaries tantalizing targets for criminals. Without bank accounts, legal marijuana businesses have a hard time paying their employees and vendors. Relying solely on cash leads to a lack of transparency in accounting and auditing, and it complicates paying the taxes that states impose on cannabis.
The problems caused by a cash-and-carry retail business likely will grow as more states move to legalize pot for medical or recreational use, unless Congress steps in and changes federal drug and drug-trafficking laws.
Voters in Alaska and Oregon approved legal marijuana sales for recreational use on Nov. 4, joining Colorado and Washington state, which opened retail recreational sales last year. Residents of the District of Columbia also voted to legalize possession and transfer of small amounts of marijuana, and city officials think they can get around a congressional effort to block the new law.
Pro-pot organizers are eyeing the 2016 ballots in Arizona, California, Massachusetts, Maine and Nevada for initiatives to legalize recreational use.
Meanwhile, medical marijuana use continues to expand. Although Florida voters fell just shy of approving medical marijuana in November, it is allowed it 23 states and D.C. Eleven other states, including Florida, have approved legislation for cannabis research and treatment of disorders that can cause seizures, according to the National Conference of State Legislatures (NCSL).
Because the legal marijuana industry is expanding so rapidly, it is difficult to get firm figures on how big it is. West estimates it at between a $2 billion and $3 billion annually, and she and others expect the legalization trend to continue, which means significantly more growth.
“I think this horse is out of the barn,” said Scott Jarvis, director of the Department of Financial Institutions for Washington state, where medical and recreational marijuana is legal.
What’s needed now, Jarvis said, is for banks and credit unions to be freed from the prospect that federal bank regulators will shut them down for doing business with legitimate marijuana enterprises.
If that happens, he said, retailers won’t have to worry so much about being robbed, and businesses won’t have to show up at the Washington State Department of Revenue with “boxes and suitcases” stuffed with bills to pay their taxes.
Under federal law, marijuana remains a federal Schedule I drug, in the same class as harder drugs such as heroin. That has been the case since 1970, when Congress passed the Controlled Substances Act, making it illegal to manufacture, possess or distribute it. The law also makes it illegal for financial institutions that depend on the Federal Reserve System’s money transfer system to take any proceeds from marijuana sales.
At an NCSL conference last month, Megan Michiels, senior counsel with the American Bankers Association, said most banks don’t want to put themselves in jeopardy by opening accounts or receiving any money - even indirectly - from the sale of marijuana for fear of violating drug laundering laws and being shut down.
“There’s just too many risks,” she said.
States had hoped new rules issued last year by the U.S. Department of the Treasury would reassure banks that they can do business with the industry. The rules required banks to report their state-licensed marijuana customers and ensure they are following state law and don’t violate Justice Department guidelines, such not selling to minors. In a separate memo, the Justice Department directed U.S. attorneys not to pursue banks as long as they adhere to guidelines.
That didn’t allay bankers’ fears, however. Nor has a provision of the broad spending bill passed by Congress last month, which said that the Justice Department cannot spend any money to prosecute medical marijuana patients or dispensaries if they’re acting in accordance with state laws.
A bill by Rep. Ed Perlmutter, DColo., would explicitly allow banks and credit unions to provide banking services to legal marijuana businesses. But it died in the last session of Congress.
Others say nothing short of Congress removing marijuana from the controlled substances list or providing states a safe haven from the Controlled Substances Act will remove bankers’ fears.
“Until federal law is changed, we just don’t see any way to go forward,” Michiels of the bankers association said.
In the absence of congressional action, some states, along with businesses, banks and credit unions, are trying to solve the problem on their own.
Jennifer Calvery, director of the Treasury’s Financial Crimes Enforcement Network, said in August that only 105 banks and credit unions - a tiny fraction of the more than 100,000 in the U.S. - take money from legal marijuana businesses.
The Salal Credit Union in Washington state is one. Bob Schweigert, Salal’s senior vice president and chief lending officer, said the credit union began a pilot program in the spring when the state began licensing producers and retail sellers to open accounts for them.
Working with the industry requires more due diligence to ensure the businesses meet state law and federal guidelines, which includes monitoring of the accounts for anomalies, he said. It also includes armored car pickups of the cash from retail outlets because, he said, “we don’t want large amounts of cashing coming into our branches; we don’t want to put our staff at risk.”
The program is working well and the credit union plans to expand its customers up to 25 in coming weeks and then venture into loans for them, Schweigert said. “It really comes down to knowing your customers,” he said. “Many of them are established business people.”
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Pubdate: Fri, 09 Jan 2015  Source: Los Angeles Times (CA)
Copyright: 2015 Los Angeles Times   Contact: letters@latimes.com
Website: http://www.latimes.com/   Details: http://www.mapinc.org/media/248
Author: David Pierson
VENTURE CAPITAL FIRM INVESTS IN POT
Founders Fund Puts Millions into a Cannabis-Focused Private Equity Group.
Despite growing momentum toward marijuana legalization, big-name investors have largely stayed on the sidelines of the budding industry, content to hold out until federal prohibition is one day repealed.
But legal cannabis now has the backing of a major tech investor - one that could inspire other established financial players to join the green rush.
Founders Fund, a leading San Francisco venture capital firm partly run by PayPal co-founder Peter Thiel, said Thursday that it was making a multimillion-dollar investment in a cannabis-focused private equity firm called Privateer Holdings.
The announcement gives the legal pot sector a shot of credibility as it continues to grapple with conflicting state and federal laws, limited access to banks and no shortage of fly-by-night investors who have sullied the industry with pump-and-dump schemes.
“This is a milestone,” said Taylor West, deputy director of the National Cannabis Industry Assn. in Denver. “It says there are real opportunities within this industry for outsiders to benefit, and it shows the industry is solid enough that an investment firm like this is comfortable stepping in.”
Founders Fund is a heavyweight in Silicon Valley circles. The firm’s $2-billion portfolio includes Airbnb, Lyft and Spotify. It’s known for its moonshot investments - it backs SpaceX, Elon Musk’s private spaceflight company. Founders Fund partner Geoff Lewis said Privateer was chosen because it had broad, long-term ambitions and owned vertically integrated brands that handled many aspects of the business, including growing marijuana and reviewing strains.
“Privateer Holdings has emerged as the market leader in legal cannabis, which we believe will become a massive industry within the next decade,” Lewis said. “We’ve been evaluating the cannabis industry for several years, and we haven’t seen another company that comes close to Privateer Holdings in terms of strategy, professionalism, talent, expertise and potential for growth.”
Privateer’s chief brand is Leafly, a website that operates much like Yelp by reviewing dispensaries, strains and doctors. Site visitors contribute to a valuable trove of growing user data that could help market cannabis products down the road.
Privateer, a Seattle company run by three business school graduates (two from Yale), has also invested in Marley Natural, a premium cannabis brand founded by family of the late reggae legend Bob Marley, and Tilray, a Canadian grower, processor and distributor of medical marijuana.
Privateer hopes to accumulate more cannabis brands and position itself as a market leader if federal prohibition is lifted - exactly the kind of gamechanging gamble Founders Fund is banking on.
“The investment into Privateer actually fits pretty closely with Founders Fund’s M.O.,” said Mike Dempsey, an analyst at CB Insights.  “They used to have a quote on their website that read, ‘We wanted flying cars, instead we got 140 characters’ [a reference to the maximum number of characters permitted in a tweet]. That spoke pretty well to their penchant for bold investments and disdain for the average tech companies of today.”
Tech industry expert Jonathan Roubini said Founders Fund typically likes to invest in sectors in which there’s little established knowledge and the regulatory environment is evolving, such as Airbnb and Lyft.
“They invest in companies that are not popular and are difficult to assess,” he said. “Privateer hasn’t been a popular investment among large VCs because of marijuana’s bad image as well as the difficulty in assessing an industry that has been recently legalized in a handful of states,” he said.
Twenty-seven states and the District of Columbia have some form of legalized marijuana or have decriminalized marijuana possession.
Privateer’s chief executive, Brendan Kennedy, said momentum has shifted toward legalization, and the investment by Founders Fund signals greater acceptance of cannabis in the financial sector.
“Six to 12 months from now there will be investment banks who will have analysts following cannabis like they follow healthcare or agricultural commodities,” Kennedy said.
Legal marijuana sales reached $2.6 billion last year, a 68% increase from 2013, according to the ArcView Group, an Oakland marijuana investment and research group.
By 2018, sales could reach $10.2 billion.
Founders Fund began courting Privateer in 2013 after a friend of Lewis’ used Leafly to fulfill her doctor’s recommendation for medical marijuana.
The two firms met for 18 months before deciding to go through with the investment.  Lewis said there was serious but brief soul-searching about the morality of investing in a cannabis firm. But he and his colleagues ultimately decided throwing their weight behind the professionalization of the industry was a positive gesture.
“Ending prohibition is a moral imperative for the U.S.,” said Lewis, who objects to drug laws that crowd prisons and favors legalization that creates regulations, labeling and greater tax revenue.
Both Privateer and Founders Fund declined to provide details on the investment amount.
Privateer has raised $50 million in its Series-B round so far and is aiming for $75 million. The firm previously raised $22 million in Series-A fundraising and a convertible bridge note, a type of loan.
Until now, cannabis investors were largely wealthy individuals, friends and family.
Troy Dayton, CEO of the ArcView Group, said Founders Fund “is the first really high-profile, decent-sized fund to come in.” Large, institutional funds and investors won’t risk putting money into pot companies until such firms are safe to list shares publicly - something that likely requires federal legalization, Dayton said.
“When it comes to getting the industry to the next phase, you need to get out of the private market,” he said. “Right now, all the good opportunities exist in smaller seed-stage companies that are private.  There still needs to be some maturation to take place before we see Wall Street money.”
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