Julie Weed , CONTRIBUTORI cover the legal marijuana industry and its entrepreneurs California cannabis entrepreneurs will earn $5.2B in revenue in 2018 as recreational use becomes legal there. The state of California will collect about one billion dollars in accompanying marijuana taxes. These numbers, estimated by Matt Karnes, industry analyst and managing partner of New York's GreenWave Advisors, point to the giant need for banking and financial services in the nascent legal cannabis industry. These services however are generally not available says Karnes, and are federally illegal. Some glimmers of change though, are on the horizon. Banking is severely limited for cannabis industry businesses. As a “schedule one” substance, cannabis is categorized to be as harmful as heroin and banks risk losing their federal charter if they work with cannabis companies. Financial institutions need to go on record with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCen) when they establish a relationship with a known Marijuana Related Business, and Karnes estimates that just 5% of all banks have done that. He believes that fewer than 1% of all banks in the United States are currently working with cannabis related companies. Some technology start-ups like Shield Compliance in Illinois are offering software to help banks with compliance, financial transparency and record-keeping to reduce the risk of working in the industry but they haven't made significant inroads yet. This leaves many marijuana businesses to have no choice but to operate in cash, so they need to spend extra money on safes, video camera systems, security guards, and armored car pick-ups. Public safety issues can also arise when so much cash is stored in known locations said Karnes. With limited options, some businesses turn to other methods to find banking. Many hide the nature of their business from their banks according to Karnes. Others turn to cryptocurrencies, which have their own sets of problems. Cryptocurrencies have a “questionable ability to pass regulatory scrutiny,” because they are so complex, said Karnes. Their lack of transparency also “remains a major stumbling block.” They also tend to fluctuate in value, so are much less stable than regular currency. Despite the complexities, the industry in California is hiring. Vangst, a recruitment firm specializing in the cannabis space, says the number of people working full time in legal cannabis grew from 43,374 people in January to 47,711 in September. Read more here.
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The federal government should stop blocking research into the drug’s medical potential.
By Richard Boxer Nov. 19, 2017 1:23 p.m. ET Jennifer, a 37-year-old Virginia school teacher now unable to work due to unrelenting pain caused by a genetic spinal disease, stared hopelessly at the bottle of opioids her doctor had prescribed her. Beset by desperation discomfort, she faced a difficult choice. The opioids would provide limited relief but came with a high risk of addiction. Or she could try marijuana, which would likely be safer but put her on the wrong side of the law. Jennifer chose marijuana. She drove to Washington, D.C., where the drug is sold legally, and visited three medical marijuana storefronts offering ridiculously named products like “Kush,” “Diesel” and “Head Trip.” While the offerings were of unknown concentrations and efficacy for her pain, they worked to a greater degree and with fewer side effects than any previous medication Jennifer had tried. Her experience (she is the daughter of a patient in Los Angeles, where I practice) inspired me to advocate for further research into clinical uses of the drug for pain relief. For the most part, doctors and patients rely on anecdotal information when deciding on a treatment path involving cannabinoids. No rigorous scientific studies have been published that corroborate claims about marijuana’s medical benefits when prescribed and used properly. The federal government should remove the drug from Schedule I of the Federal Controlled Substances Act so researchers can lawfully assess its medical potential. In September, Sen. Orrin Hatch introduced a bill “to improve the process for conducting scientific research on marijuana as a safe and effective medical treatment.” The Marijuana Effective Drug Study Act of 2017 has bipartisan support. “To be blunt, we need to remove the administrative barriers preventing legitimate research into medical marijuana,” Sen. Hatch said in a press release. Any research on medical marijuana must first assess the potential for addiction to other, harder drugs. The notion that marijuana is a “gateway” is so far unsupported. “There is no conclusive evidence that the drug effects of marijuana are causally linked to the subsequent abuse of other illicit drugs,” wrote researchers for the Institute of Medicine in 1999. Still, the idea lives on, underscoring the need for real research. Not only is marijuana a potentially effective pain treatment, it may also help alleviate the opioid crisis. States that have legalized medical marijuana enjoy significantly lower levels of opioid consumption and overdose deaths than states that continue to penalize possession and use, according to the Journal of the American Medical Association: “States with medical cannabis laws had a 24.8% lower mean annual opioid overdose mortality rate . . . compared with states without medical cannabis laws.” Researchers from the University of California, San Diego found that hospitalization rates of people suffering from painkiller abuse and addiction dropped 23% and overdoses requiring hospitalization fell 13% in places where medical marijuana was made legal. And a recent study found that Colorado, which legalized the drug for recreational use in 2014, experienced a 6.5% reduction in opioid-related deaths. Last year alone, more than 64,000 Americans died from drug overdoses. Recognizing the link between decriminalizing marijuana and reducing opioid overdoses could save thousands of lives. With 650,000 prescriptions for opioids filled each day (3,900 for new patients) the epidemic seems likely to continue. Although scientific proof is no guarantee of an end to partisan squabbling, evidence-based medical data may offer hope for a consensus about the effectiveness of cannabis in the alleviation of human suffering. Jennifer is not a criminal. She uses marijuana to relieve her debilitating pain because it is effective, non-addictive and almost impossible to overdose on. By preventing essential research on the medical uses of the drug, the federal government forces Jennifer, and thousands like her, into an impossible position. Dr. Richard Boxer is a clinical professor at UCLA’s David Geffen School of Medicine and medical adviser to iAnthus Capital Management, which invests in the cannabis industry. by Susan Soares
Shocking headlines are click bait but fudging the numbers in the war on drugs is more insidious than that. Take for example the article in Herald and News By STEPHEN FLOYD "$375 million in cannabis seized by Siskiyou in 2017". Floyd reports: YREKA — The Siskiyou County Sheriff’s Office has reported seizing more than $375 million in illegal cannabis so far this year, with additional marijuana raids expected this week. In a news release Monday, the sheriff’s office said 27,072 cannabis plants and 12,570 pounds of processed marijuana have been seized during 2017 by the Siskiyou Interagency Marijuana Investigation Team (SIMIT). The plants totaled $324.8 million and the processed marijuana $50.2 million, based on values within the illegal cannabis market. Let's look at those numbers. $324.8M divided by 27,072 plants equals $11,997.64 per plant. Outdoor cannabis is going for less than $1200 a pound these days but let's give them the benefit of the doubt and say each pound goes for $1500. That means they are saying that each and every plant had 8 pounds of sellable, cured, and top shelf cannabis on it. Wow!! Now let's look at the processed "marijuana". $50.2M divided by 12,570 pounds is nearly $4000 a pound. Those numbers just don't work out. Inflating the value of a cannabis bust is a deliberate move for law enforcement's public relations and also to earn federal government grants. The bigger the bust appears is incentive because it results in more promotions and grant money for the local cops. At this time in history where cannabis for adult use is about to be regulated and law enforcement in general is having the biggest PR crisis in history, it is counter intuitive that they would use this tactic. Please write to the reporter and ask him to fact check Siskiyou law enforcement's numbers. By Amanda Chicago Lewis
I was deep into my second or third joint of the afternoon, lounging on a green leather Moroccan pouf in the shade, when an elegant older blonde in a bright floral dress rushed up to declare that I was urgently needed on stage. It was Susan Soares, the beloved marijuana advocate and ringmaster of the day's events: a casual and intimate southern California conference called The State of Cannabis, held a few weeks back and filled with pot insiders and political stakeholders. Apparently another journalist had flaked at the last minute, leaving a vacant spot on the final panel of the day: "Cannabis & the Media." Baked as I was, could I go sit in front of a few hundred people and comment on what New York Media Elites talk about when they talk about weed? Of course I could. Soares is the kind of affable, sincere person you just want to say yes to – even when you're high as balls and not quite sure you'll be able to form coherent sentences. And I tend to take the reason we had all come together – to do some soul-searching about the Golden State's most valuable crop – rather seriously. Along with the usual cannabis entrepreneurs, investors, and activists, there were several mayors, prosecutors, and previously prohibitionist government types in attendance. But as the biggest marijuana market in the world barrels toward a January 1st, 2018 deadline to begin accepting applications for both medical and adult-use licenses, initiating what will likely be the final phase in the state's bumpy two-decade journey toward legal pot, what is, in fact, the state of cannabis in California? "Shitshow," one prominent advocate told me. "But don't mention my name. These edibles are starting to kick in." Several other answers fell along the same lines: "Precarious." "Disarray." "Evolving." "Complicated." "Compartmentalized." "Chaotic." "Uncertainty." "Clusterfuck." "Capricious." The best thing anyone had to say? "Improving." Read more here. This is just the tip of the iceberg. Corruption is rampant right now with the rush to enter the new cannabis industry. It's time to call anyone and everyone out that are abusing their elected positions to extort money from entrepreneurs that are trying to enter the industry. We have the opportunity to create a new way of doing business; a socially conscious industry. Please contact me if you have any direct evidence of corruption in your local government @ Susan@justsaycare.org.
Shea Johnson Staff Writer Posted Nov 7, 2017 at 12:01 AM Wright faces two federal charges: bribery of programs receiving federal funds and attempted arson of a building affecting interstate commerce. ADELANTO — Mayor Pro Tem Jermaine Wright faces federal charges he solicited and accepted a $10,000 bribe from an undercover FBI agent in exchange for using his political influence to assist and shield a supposed commercial marijuana transportation business, the Daily Press has learned. Wright, 41, is also accused of seeking the aid of an FBI informant to burn down his restaurant, Fat Boyz Grill, in order to collect $300,000 in insurance money, according to a sworn affidavit obtained by this newspaper. Arrested Tuesday, Wright is expected to appear in a federal court in Riverside on Wednesday, but is not anticipated to enter a plea, Thom Mrozek, spokesman for the U.S. Attorney’s Office, told the Daily Press. Wright faces two federal charges: bribery of programs receiving federal funds and attempted arson of a building affecting interstate commerce. Read more here. Finally, a politician is going to bat for pro athletes who wanna use weed -- saying the NFL and NBA are treating players like 2nd class citizens for taking away their rights to get high (medically).
Rep. Earl Blumenauer (D-OR) says it's about damn time league commissioners acknowledge that marijuana is BETTER for treating the "really terrible pain" pro athletes endure. "It's much less damaging than the opiods, the painkillers, the shots, the pills ... and it's time professional sports stops punishing them but works with them." Congressman Blumenauer says 2/3 Americans have legal access to medical marijuana -- so to ban NBA and NFL players is basically treating them like "second class citizens." BTW -- shout-out to the great people of the 3rd District in Oregon, your rep is the COOLEST DUDE EVER. We also spoke with ex-NBA player Al Harrington -- who's actively lobbying the NBA to lift the weed ban -- and asked if there's been any progress since he spoke about the issue with ex-commish David Stern. Read more here. by Benjamin M. Adams | October 30, 2017
CULTURE MAGAZINEIndividuals who smoke cannabis have more sex than those who don’t smoke cannabis, according to findings from researchers at Stanford University. The groundbreaking study, “Association Between Marijuana Use and Sexual Frequency in the United States: A Population-Based Study,” was published October 27 in The Journal of Sexual Medicine. It confirms what many had already believed—that cannabis is an incredible natural aphrodisiac. Women who smoke cannabis daily had sex 7.1 times per month on average, while women who don’t smoke had sex six times per month on average. Men who smoke daily had sex 6.9 times per month, while men who don’t smoke had sex 5.6 times per month on average. “We reported how often they smoke—monthly, weekly or daily—and how many times they’ve had sex in the last month,” lead author Dr. Michael Eisenberg told NPR. “What we found was compared to never-users, those who reported daily use had about 20 percent more sex. So over the course of a year, they’re having sex maybe 20 more times.” Twenty more times per year, many would agree, is a significant change in lifestyle. The positive association between sex and cannabis crossed the boundaries of marital status, race and gender. The researchers acquired figures from the Centers for Disease Control and Prevention’s annual reports from 2002 to 2015. Other factors were considered including having children, religion and alcohol. Women especially become aroused while under the influence of cannabinoids, according to a past study. Strains like Sexxpot are designed specifically for women in a sexual setting. Companies like FORIA have taken notice of cannabis’ aphrodisiac properties. Others disagree whether cannabis can increase libido. Obviously, everyone’s body reacts differently to cannabis and some consumers do not notice any increased arousal. Both alcohol and cannabis have been associated with loosened inhibitions, such as people who claim they are “one hit away” from sex. The study opens the door to more cannabis-based medicines designed specifically for sex. Read more here. by Aaron Smith @AaronSmithCNNOctober 31, 2017: 2:24 PM ET
Buying legal marijuana in California could be pricey enough to keep the black market healthy.Between customers, retailers and growers, taxes on cannabis may reach as high as 45% in parts of the state, according to a Fitch Ratings report. Those high taxes may keep consumers away from legal marijuana stores once the recreational retail market goes live on January 1. "High effective tax rates on California cannabis may complicate the state's efforts to establish legal markets" said analysts Stephen Walsh and Karen Ribble in a Fitch Ratings report on California's marijuana taxes. California marijuana consumers are going to have to pay a combination of state and local taxes that vary by municipality. Growers and sellers have their own taxes, too. Consumers will pay a sales tax ranging from 22.25% to 24.25%, which includes the state excise tax of 15%, and additional state and local sales taxes ranging from 7.25% to 9.25%. Local businesses will have to pay a tax ranging from 1% to 20% of gross receipts, or $1 to $50 per square foot of marijuana plants, according to the Fitch report. In addition, farmers will be taxed $9.25 per ounce for flower, and $2.75 per ounce for leaves. The Fitch report says this combination of state and local taxes for consumers, retailers and growers could keep portions of California's cannabis industry off the grid, where it has flourished for some time. "California's black markets for cannabis were well established long before its voters legalized cannabis in November 2016 and are expected to dominate post-legalization production," said the Fitch report. Among the eight states where recreational marijuana is legal, only Washington has a higher tax rate at about 50%. Colorado and Nevada both follow with rates of 36%. Oregon has a tax rate of 20% and Alaska has a rate of up to 20%. Medical marijuana has been legal in California since 1996, but the retail markets for recreational marijuana are just now ramping up and are scheduled to begin on New Year's Day. Read more here. |
AuthorSusan Soares has written for Cannabis Now Magazine, Alternet, and Sensi Magazine. Archives
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