Rohrabacher-Blumenauer requires annual verification when the federal spending bill comes up for consideration. This has consistently happened since 2014. Senate already approved it this July. This approval has, however, no force unless Congress concurs too and that may not happen this time.

Congress has an instrument called the House Rules Committee, which balances in favor of the majority party. Since Congress does not have unlimited time for discussions, the Rules Committee determines the ‘rules’ governing debate over a specific measure. On September 6, the committee decided to exclude the Rohrabacher-Blumenauer amendment from the federal spending bill debate.

According to Los Angeles Times, it made this decision at the behest of the U.S. Attorney General. The incumbent previously wrote to Congress members in May urging them to refuse the amendment because of “a historic drug epidemic and potentially long-term uptick in violent crime”. It seems he wants to give the Justice Department “free rein” to enforce the Controlled Substance Act.  This archaically treats marijuana as ‘addictive as heroin and with no medical value’.

This flies to fly in the face of his boss, at least in terms of what the President said during his election campaign in Sparks, Nevada on October 29, 2015, and we quote.

“The marijuana thing is such a big thing. I think medical should happen – right? Don’t we agree? I think so. And then I really believe we should leave it up to the states. It should be a state situation …

… but I believe that the legalization of marijuana – other than for medical because I think medical, you know I know people that are very, very sick and for whatever reason, the marijuana really helps them … but in terms of marijuana and legalization, I think that should be a state issue, state-by-state.”

Does the Attorney General’s action mean the Rohrabacher-Blumenauer amendment is dead? This is a time for calm heads, and clear thinking as the relationship between congress, senate and president finds new rhythms. It would be nice to believe a joint Congress-Senate reconciliation committee will think logically as it hammers a way through the impasse.

They should respect the will of the people in the 46 states that approved medical use of cannabis. Or else, what happens to their children facing a return to seizures? Moreover, what happens to terminally ill cancer sufferers who may die in a mist of pain? We cannot begin to understand where this fits into the Attorney General’s “historic drug epidemic and potentially long-term uptick in violent crime.” Could anybody explain?

The post Are Medical Marijuana Patients Facing Their ‘Last Trump’ appeared first on California Medical Marijuana Information.

The Huffington Post reports how Jeff Sessions, 84th Attorney General of the United States had been pressing the Senate Appropriations Committee to change the status quo. In May 2017, he wrote a personal letter to congressional leaders to repeal the Rohrabacher–Farr amendment, thereby putting persons with dread diseases at risk of arrest for taking marijuana to ease their pain.

The Attorney-General previously wrote, “I believe it would be unwise for Congress to restrict the discretion of the department to fund particular prosecutions, particularly in the midst of a historic drug epidemic and a potentially long-term uptick in violent crime.” We will pass on whether people reposing on a sick bed are capable of such things, and continue with events that unfolded in Senate on Thursday, July 28, 2017.

As background, 28 states, plus the District of Columbia, and the U.S. territories of Guam and Puerto Rico have laws in place regulating the use of medical marijuana. A further 17 states permit some use of the non-psychoactive ingredient cannabidiol, increasing the popular decision further. Despite this clear, overwhelming majority, the 84th Attorney General of the United States seems convicted to keep rowing upstream, for whatever reason.

We salute the Senate Appropriations Committee for abiding by the unanimous decision of the U.S. Court of Appeals for the 9th Circuit on Tuesday 16 August, 2016. It ruled the U.S. Department of Justice “can’t prosecute medical marijuana patients, and their providers for violating federal cannabis law, as long as those individuals are in full compliance with state laws legalizing medical marijuana”.

“This vote is not only a blow against an outdated reefer madness mind-set, it is a personal rebuke to Jeff Sessions,” Tom Angell, chairperson of drug policy reform group Marijuana Majority said in a statement. The omnibus spending bill will now go to the full Senate for ratification. If it is still pending approval by end September 2017, the Rohrabacher–Farr amendment will continue for another year.

We respectfully suggest the 84th Attorney General of the United States apply his mind to the true causes of his “potentially long-term uptick in violent crime”. We very much doubt expecting people to die on their sickbeds in discomfort would make a difference to his cause, but we are open to suggestions.

The post Senate Committee Session Takes a Pot Shot at Jeff appeared first on California Medical Marijuana Information.

“None of the funds made available in this Act to the Department of Justice may be used, with respect to the States of Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Washington, and Wisconsin, to prevent such States from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana.”

The medical marijuana lobby hailed this as a victory for MMJ, and proof the battle was over finally. But, was it? The text was time-based, just like the omnibus spending bill that required refreshment every year.

Last April, when the bill was up for annual review Dana Rohrabacher and thirty Congress Reps wrote the subcommittee reminding it to include aforesaid wording in the measure. It did appear for a while in the base text, says Smart Approaches to Marijuana (SMA), but then it mysteriously went walkabout in the halls of Congress. The June 28 version has not a puff of it remaining, and this has set a flock of chickens loose in the proverbial marijuana field.

SMA wants marijuana policies ‘aligned with the scientific understanding of marijuana’s harms’ and an end to ‘commercialization and normalization.’ Westword writes that SAM was arguing against the language, and the subcommittee pulled it from the draft. The SMA president needless to say waxed ecstatic about their success, but that’s only half the argument.

Rohrabacher and Oregon Congressman Earl Blumenauer issued their own press release arguing the text always added manually by amendment and was never a permanent feature of the omnibus spending bill. Blumenauer added, “The folks at SMA clearly don’t understand the legislative process. Our amendment has never been in the CJS Subcommittee’s bill. There is no news here. We are exactly where we thought we would be in the legislative process.”

Right now, we are facing a standoff between the two sides. Blumenauer’s latest statement on the matter was, “Voters in states across the country have acted to legalize medical marijuana. Congress should not act against the will of the people who elected us.” The words are still ringing in our ears, but we shall have to wait and see what transpires next.

The post Is Congress Taking Pot Shots at MMJ appeared first on California Medical Marijuana Information.

• The Teamsters Union proposal is set aside in favor of multiple licensing
• Hence businesses can apply to grow, manufacture, distribute, and sell
• However testing facilities will not be considered for these other licenses
• And medical and marijuana businesses may not operate on same premises

While these are the main thrusts to the draft language, could the devil lie in the detail as contained in California Norml’s more comprehensive piece? It remains to be seen what consumers are going to make of this, and how powerfully business, political and union interests lobby for or against it.

We are inclined to favor support for the broad thrust of the Governor’s thinking. The medical industry will be able to continue, regardless of federal interference in the recreational side. Moreover, under-age Californians will be able to access their medicine in a separate industry that will take some sting out of opposition.

The Sacramento Bee believes the trailer bill will garner support from members of United Food and Commercial Workers Western States Council, affiliates of the California Cannabis Industry Association, and supporters of the California Cannabis Manufacturers Association too. It has the CCIA policy director saying, “It seems like they kept about 99 percent of Proposition 64, but the fight is not done yet” (to preserve the proposition).

However, Sacramento Bee reports a lobbyist for the Teamsters claiming they are going to oppose multiple licenses. “We’re going to fight that part of it really hard,” Barry Broad says. “It raises really significant anti-trust issues that we don’t think are accounted for.” This could be the point where the parties reach a stalemate.

The Teamsters Union says it is America’s strongest and most diverse union, although it originated as a merger between two driver associations. It has continuously supported the 2015 Medical Marijuana principle of separate growers, manufacturers, distributers, and sellers, with independent truckers delivering between them. Their rationale is this is the only way to prevent a single body controlling the entire industry.

The post Gov. Brown Calls the Shots on Marijuana Merger appeared first on California Medical Marijuana Information.

Nowadays you are likely to encounter an intelligent bud tender across the counter in a marijuana dispensary, not a stoned punk as stereotypes might have some imagine. These are among the most favored positions in the industry. This is especially true for a young generation keen to polish their marijuana knowledge at places like the Oaksterdam University in Oakland, CA, that punts itself as America’s first and premier cannabis college.

Bud tender positions are popular because they are one of few roles where it’s possible to meet and greet medical marijuana customers directly, and exchange hot tips (of the intellectual kind) for enhancing the experience. As in the case of some fast food restaurants, the habit developed of putting out tipping jars for happy customers to fill. This also opened up the possibility in law enforcement minds that some sales could end up as ‘tips’ thereby avoiding sales tax, and they banned the practice.

The Washington State Liquor and Cannabis Board (LCB) thought it had the situation nailed down in Regulation RCW 69.50.357 relating to retail outlet rules. This inter alia states:

1. Retail outlets shall sell no products or services other than marijuana concentrates, useable marijuana, marijuana-infused products, or paraphernalia intended for the storage or use of marijuana concentrates, useable marijuana, or marijuana-infused products.

A narrow definition suggests they were right that some bud tenders were selling their advice in exchange for tips.

The Washington LCB’s subsequent Regulation 2E2SHB 2136 modified the tax structure by exempting certain categories of medical marijuana from sales tax. Briefly, these are:

• Products the Health Department deems ‘medically beneficial’
• Low THC products medically endorsed for qualifying patients
• Products the Health Department deems low THC / high CBD
• Low THC marijuana products cooperatives produce for members

This means you could theoretically tip your bud tender in Washington State within this narrow range of choices, and the Washington LCB will allow this. Business owners should note that demanding a tip is a form of coercion, and if that is the case, the “tips” would be subject to business and/or employee taxes.

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The Core Finding of the Medical Marijuana Patient Survey

The report states under its conclusions that, “… the prevailing perception of a medical marijuana patient is a masquerading recreational user (a stoner)” is unfounded. “78% of those using cannabis for health and wellness are above the age of 25 … these people are highly educated working professionals. Many are parents. They could be your friends, your colleagues, or your neighbors.

“All of them have legitimate health issues … our research and analysis show a much larger portion be genuinely seeking an alternative to traditional medication for improved health and wellness”. Here’s a key table lifted from the report that is of intense interest to those either trading in, or thinking of entering the lucrative medical marijuana market.

Source of Information in This Table

However, over half the 17,000 MMJ users surveyed indicated a fondness for psychoactive cannabis highs too, putting a slightly different spin on the ball that HelloMD is trying to play back down the line. The answers to the question, “do you prefer psychoactive cannabis products?” fell into four distinct camps.

28%: YES

31%: SOMEWHAT

20%: NO

31%: DON’T KNOW

Given the currently unsympathetic federal approach to medical marijuana consumption, and HelloMD’s assertion that, “78% of those using cannabis for health and wellness are … highly educated working professionals” the proportion enjoying an associated psychoactive high is if anything likely to be greater.

So Where Does that Leave the Claim that MMJ is Only Medicine

Objectively speaking, this counters the claim that medical marijuana patients are not after pleasurable experiences. On Page 5 of their report, HelloMD states that, “almost all users (76%) reported using cannabis for relaxation … respondents reported beneficial side effects of relaxation, mood elevation, a better sleep, a replacement for the use of alcohol or as a libido or sexual enhancement”.

Taking medical marijuana appears to be more pleasant than – and sometimes as effective as – taking pharmaceuticals to dull pain. If somebody has a problem with that, then we would love to hear the scientific basis for their argument, and not receive a delivery of sour grapes.

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How the Cannabis Industry is Faring

Compared to other start-ups, marijuana is doing better than most, especially given the controversial nature of the product.

    – 3% are facing ‘significant losses’

    – 15% are ‘losing some money’

    – 28% are at breakeven point

    – 38% are ‘modestly profitable

    – 16% report say they are ‘very profitable’

Where there is profit it comes fast, with 62% claiming success within 12 months, and only 6% taking more than 3 years. Compare that with dot com technology, where some of the biggest names are still bleeding money. Some day you could rue not casting your net, while the fish were running in such numbers.

Can I Invest in The Cannabis Industry?

You bet you can. In the past two years, venture capitalists and angels have been diving in, with more than a few newbies raising over $1 million in investments. We are sure they read the book about the South Sea Bubble. The attraction here is a tangible product, and a ready-made market. There are seven distinctly different areas to consider.

These areas are growing crops, providing cannabis medicine, selling the product for recreational use, trading in edibles / infusions, providing industry services, suppling supplementary products,  and  trading in legal cannabis generally, in order of investor preference.

Are You Saying Cannabis is Risk Free?

Of course not: There is more to success in business than having a product that sells, and cannabis is no exception. You could invest in something as rewardable as the American pet industry where the average spend is over $1,500 a year, and still come off second best if you made the wrong judgement.

The average U.S. cannabis user spends almost $300 more than that on their cannabis medicine / recreation, and the numbers are sure to increase post full legalization.

Growth is Largely a Given

Alaska, Colorado, District of Columbia, Oregon, and Washington have all legalized cannabis for personal use. District of Columbia and 23 states now regulate medical marijuana and more are considering it. The U.S. cannabis industry is nearing the tipping point for full legalization. The rush in on to participate. If you are an investor, this is something to consider seriously for your portfolio.

The post Will the Marijuana Gold Rush Last? appeared first on California Medical Marijuana Information.

No matter which entity you choose, most lawyers recommend some form of incorporate, largely to protect yourself from personal liability for business debts and lawsuits. Yes, you can go it alone as a sole proprietor or run your business as a partnership. But it places additional obstacles in your way. Please also remember that the liability protection of a corporation or LLC does not extend to criminal activities. As such, you are still subject to arrest (particular from a Federal standpoint) although these prosecutions appear to be decreasing.

There are the questions of whether to take on a traditional incorporation or a limited liability company (or LLC). This question is more difficult to answer – both are useful in particular circumstances. Then there is the issue of whether to become a non-profit or a for-profit company. These rules vary by state, sometimes with fairly dramatic differences and other times with only subtle distinctions. It’s best to find the appropriate code section for your state, typically organized under the Secretary of State’s office.

As an example of the strange discrepancies across state lines, consider Washington state versus California. In Washington state, a non-profit corporation can make a profit (although they cannot distribute those profits to the organization’s members, directors or officers). In California, however, there have been instances where regulators have raided dispensaries’ records, to prove they are not being run as a for-profit business.

It’s also vital for an entrepreneur to not assume that the legal phrases used in one state are identical in meaning to your own state. A mutual benefit corporation, in California, is one of at least three types of ways that a dispensary organized as a “collective” can incorporate. In Washington state, the most similar legal entity to California’s mutual benefit corporation is called a mutual benefit organization. But a mutual benefit organization is not identical in structure to California’s mutual benefit corporation, and Washington also has a similar entity called a public benefit organization.

The collective-versus-cooperative question is one that most medical-marijuana entrepreneurs should take time to consider thoroughly. The collective concept, based on California law, refers to a group of entities that work on, or share, a similar project or set of interests.

A cooperative, in contrast, is a union of individuals that forms to conduct some productive enterprise, and to share the profits in accordance with the capital or labor that each participant contributes. Cooperatives can incorporate under the LLC banner, or as an S-Corp or C-Corp, although none of those forms is required.

A potential medical-marijuana business owner should also review the ordinances of the municipality or county government in which he or she wants to open the business. A local government may have enacted rules that restrict where a marijuana dispensary can be located; some require a minimum distance from a school or church, for example. Some cities, even those located in states that have legalized medical marijuana, have enacted their own total bans on dispensaries.

Another consideration for entrepreneurs (in a medical marijuana state) is the option of working as a primary caregiver. This option, in virtually all states that allow it, will drastically limit your ability to grow an extensive business. But for those who are looking to make some extra cash on the side, or who are trying to take care of a family member or friend and want legal protections, it’s worthwhile to study your state’s rules for primary caregivers.

As with the questions of cooperative-or-collective, and non-profit versus for-profit, states also vary when it comes to how primary caregivers are regulated. Some states, even those that have legalized medicinal marijuana dispensaries, including Minnesota and New York state, have not legalized primary caregivers. For states that have approved primary caregivers, there are slight variations of the rules by jurisdiction. Most, however, require the patient to designate the primary caregiver and most also require the primary caregiver to be at least 18 years of age. Some place prohibitions on those persons with a criminal background, such as a past felony charge. California, and some other states, place the additional burden on primary caregivers that they must have already been giving care to the patient for an extended period of time before the patient was prescribed marijuana. Also, California says a primary caregiver cannot just deliver the marijuana, he or she must also be responsible for the patient’s housing, health and safety.

The marijuana lobbying organization NORML has compiled a summary of the basic laws for each state that has approved the dispensing of medical marijuana. The summaries for the 10 largest states that have approved laws can be found here:

California; New York; Illinois; Michigan; New Jersey; Washington; Arizona; Massachusetts; Minnesota; Colorado

Finally, don’t forget about taxes. As a law-abiding business owner, a marijuana dispensary operator or grower must ensure he or she is compliant with all taxes laws, which includes the requirement of levying sales taxes on your retail sales and, in some cases, local taxes. Additionally, when establishing the legal entity for your business, review the requirements for application and registration fees and include those costs in your business plan. The fees can vary extremely widely. Arizona, Connecticut and Illinois, for example, are among the states that charge $5,000 to apply for a dispensary license. Colorado, on the other hand, charges between $7,000 and $15,000 for the same license. The registration fee for a cultivator is typically far more expenses. Illinois, for example, charges a whopping $200,000 for a cultivation center license (and $2M in an escrow account) making it out of reach from most.

The post Entity Selection for Your Marijuana Business (Corp, LLC, or Sole prop) appeared first on California Medical Marijuana Information.

The U.S. Postal Service has issued a statement saying that it’s illegal to mail material with marijuana advertising, even in those states that have legalized marijuana. The USPS cited the federal Controlled Substances Act as the legal underpinning for its decision, according to Thomas Marshall, the Postal Service’s general counsel.

Additionally, it’s illegal to use the U.S. Mail to facilitate any act that constitutes a felony, Marshall said.

The Post Office took the step of issuing the statement, after Democratic members of Oregon’s congressional delegaton asked Postmster General Megan Brennan for a more “detailed explanation” of its policy. The delegation’s action followed a warning sent by the Oregon Newspaper Publishers Association to its members, urging them to reject any advertising related to marijuana. Many newspapers are circulated through the U.S. Mail.

The Postal Service took the additional step of issuing a national policy that essentially reiterates the general counsel’s interpretation; the policy was issued as a result of the newspaper association’s concerns.

But there is a potential loophole to the new Post Office regulation, at least based on how Marshall reads the law. Local postal officials can not refuse to accept mail that violates federal policy, including marijuana-related ads.

That’s because local postal officials lack the legal authority to make a determination on their own about whether a parcel is mailable or non-mailable. Furthermore, local postal officials cannot deny matter from circulating through the mail, even if it contains marijuana advertising. Instead, the local-level postal official should forward mail containing potentially illegal advertising to higher-up authorities.

With that in mind, should marijuana entrepreneurs feel safe to send marketing materials through the mail? Some publications in the Portland, Ore., area have been publishing ads from marijuana-related businesses for years.

The Democratic members of Congress from Oregon issued a joint statement, in which they said the legal interpretation from the Post Office’s Marshall is outdated and uncompromising, and that decisions made by Oregonians that are legal should be respected as such.

It appears, then, that the issue of marijuana ads has a long way to go before it’s reached a clear-cut conclusion.

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Common Methods of Cannabis Extraction

Extraction of cannabis oil can be a complex, potentially dangerous activity, with the exception of the dry sieve and water methods we describe shortly. If, for whatever reason you decide to do your own extraction using other methods, we recommend you do significant research first, perform extraction in a well ventilated area, wear flameproof clothing, and have a fire extinguisher nearby. Here are the commonest methods currently in use.

Cannabis Extraction Using Non-Hydro Carbons

 – Dry Sieve Extraction Method – Equipment Cost: Minimal

This method for releasing resin involves agitating the raw product over a screen that allows the resin buds through for compression into blocks. Works best with frozen material that snaps easily. 

 – Isopropyl Alcohol Extraction Method – Equipment Cost: Minimal

Alcohol is highly water-soluble and works by dissolving the heavier oils from the plant matter. The mixture must then be carefully heated to remove the alcohol from cannabis oil.

 – Water Method – Equipment Cost: $50 – $250

This procedure is similar in concept to the dry sieve method, except the frozen product is placed in water and agitated with ice blocks so the heavier resin buds sink to the bottom.

 – Carbon Dioxide Super Critical – Equipment Cost: $100,000+

The CO2 extraction method injects heated high-pressure gas into a vessel containing raw marijuana product. The CO2 acts as a solvent separates out the essential oils from the plant material. In a way this process is similar to removing caffeine from coffee beans.

Cannabis Extraction Using Non-Hydro Carbons

 – Butane / Propane – Equipment Cost: $ 1,000 and up

Butane is the commonest solvent although mixing it with propane is also popular. Both solvents dissolve essential oils efficiently and cost-effectively. This method is only safe in a laboratory setting!

 – Hexane – Equipment Cost: $ 100,000+

Hexane is similar to butane and propane in application. However, it boils at a higher temperature where it becomes unstable, inflammable and potentially explosive. This method is only safe in the hands of specialists and typically not recommended.

Cannabis Concentrates, Point of View the User

Most users are unaware of the effort that goes into producing the concentrates they enjoy. Most people are mainly interested in the medical benefits or the euphoria the product produces. A process of smoking the concentrated oil is called ‘dabbing’, A dab usually refers to a dose of concentrated cannabis that is heated on a hot surface, usually a nail, and then inhaled through a dab rig. The heated surface is usually made of titanium or quartz, and a perforated glass dome placed over it for inhaling the concentrated smoke. An auxiliary market has sprung up producing specialist equipment for smoking dabs.

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