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FBI Softer Attitude Towards Cannabis
http://cannabisnowmagazine.com/current-events/legal/fbi-hints-at-softer-attitude-towards-cannabis
Two weeks ago, a prominent cannabis industry figure in California was indicted on federal charges of committing fraud and violating labor laws. In an affidavit from the FBI for the case, the Bureau revealed what could be a softer approach to the marijuana industry.
On August 13, news broke that Dan Rush — the first person in the nation to organize cannabis workers into a union in Oakland, California through the larger United Food and Commercial Workers Union — was charged by the FBI’s Public Corruption and Civil Rights Squad with allegedly accepting over $600,000 in cash and gift bribes, creating a conflict of interest in the union organizing process.
His arrest shook the Bay Area cannabis community and he has since been fired from the United Food and Commercial Workers Union. As his case unfolds, one small detail in the FBI’s unsealed affidavit has revealed what could be a significant federal marijuana policy shift.
The FBI built its case against Rush with reports from two informants, Martin Kaufman of Oakland’s Blum dispensary and Derek Patterson of Terra Tech. Usually, the FBI provides non-prosecution agreements to such informants to protect them from incriminating themselves in their testimony. However, the FBI states in the affidavit for the Rush case that Kaufman did not receive a non-prosecution agreement. Instead, the FBI stated it had no intention of prosecuting him because he was acting in compliance with California’s state marijuana laws.
“Consistent with the U.S. Attorney’s Office policy on medical marijuana, it is not the intention of the U.S. Attorney’s Office to prosecute Kaufman for the medical marijuana-related conduct described in the Affidavit,” the affidavit reads.
The U.S. Attorney’s policy that the affidavit references is the “Cole Memo,” written by the Deputy Attorney General James Cole in August 2013. The Cole Memo outlines a federal policy that government agencies would prioritize things like preventing the distribution of marijuana to minors and preventing revenue from marijuana from reaching cartels — thereby deprioritizing the prosecution of individuals and companies operating in compliance with state laws.
However, there has not been concrete proof until now that the FBI was purposefully acting in compliance with the Cole Memo or that the FBI would treat cannabis industry individuals acting decently in a different manner than those acting indecently, according to the offices of Robert Raich, an Oakland-based cannabis lawyer who has argued twice before the U.S. Supreme Court on cannabis cases.
“Statements in the affidavit… illustrate that the federal government is making a decision to adhere to the policy of not prosecuting individuals and businesses complying with their own state’s laws as outlined by the second Cole Memo,” said Raich in an email.
In fact, Raich said, this affidavit illustrates that even though the FBI became intimately aware of multiple cannabis businesses’ operations and finances while investigating Rush, they still were unwilling to pull the trigger on prosecuting those state-compliant businesses.
“Without a formal non-prosecution agreement for their cooperation, the U.S. Attorney could have easily decided to initiate prosecutions against Kaufman and Peterson based on the origin of Kaufman’s funds and TerraTech’s business operations through MediFarm and other subsidiaries,” Raich said in an email. “The U.S. Attorney chose not to do so, and that is significant.”
A spokesperson for the San Francisco division of the FBI, Michele Ernst, said the Bureau could not comment given the ongoing nature of the investigation.
Raich also noted that this affidavit in no way establishes a legal precedent, and the FBI could certainly shift their policies or reinterpret the Cole Memo.
The Department of Justice — which oversees the FBI — has already proven adept at such reinterpretations of government policy.
This April, a representative of the DOJ, Patrick Rodenbush, told the LA Times that the department still had the authority to prosecute individuals and organizations in medical marijuana states, even though the Rohrabacher-Farr amendment prohibits the DOJ from spending money to prosecute state-compliant cannabis actors.
The amendment, Rodenbush said, only prohibited the DOJ from “impeding the ability of states to carry out their medical marijuana laws.” Effectively, he said, the DOJ can prosecute anyone as long as they do not stop the state from implementing their laws.
The language of the Cole Memo is open to similar interpretations. For example, the Cole Memo could be interpreted to allow the federal government to prosecute state-compliant businesses in any state whose regulations they deem too loose.
The Rush affidavit suggests that the Department of Justice considers California’s medical marijuana market legitimately regulated. But until cannabis is no longer considered a Schedule I drug under the Controlled Substances Act, federal policies are always subject to change.
Marijuana Commerce Blossoms, But Challenges Abound
by Michael Bodley and Clarissa Cooper
Big Money Bets Weed Will Bring in the Green
As marijuana prohibition falls in one state after another, cannabis sales are shifting from street corners to storefronts as opportunists line up to cash in on what optimists say is the biggest investment opportunity since the dot-com boom of the turn of the century.
Investors of all varieties are starting to look at marijuana as less of a stoner's fad and more of a serious business venture. The industry totaled $2.66 billion in U.S. sales in 2014, up 74 percent from $1.53 billion the year before, according to the ArcView Group, a cannabis industry investment network.
Business insiders said they expect the market to expand to many times its present size as more states legalize marijuana for both medical and recreational use.
Already the cannabis trade has not only brought in millions for dispensary owners and cultivators, it's also created a thriving ancillary market, driven job growth and boosted property values, marijuana advocates claim.
Still, the challenges are many for the kind of high-risk, high-reward investment that cannabis calls for. No industry since post-Prohibition alcohol has come close to having had a harder time getting off the ground, from strict regulation and heavy taxation to a lack of investors and banking services.
"A lot of people look at the cannabis industry and say, 'Oh my God, it's so much harder. (There are) so many barriers ... You've got endless problems,'" said Troy Dayton, CEO of the ArcView Group. "Well, some people see endless problems. Other people see endless problems disappearing fairly soon and see this as a great investment."
Dispensaries, cultivators not only ones making money
Jamie Perino, the CEO of Colorado-based Euflora dispensaries, said the three-store chain has so many customers that it wants to open more outlets, not only in Colorado but also across the country.
Perino estimated that Euflora, dubbed the "Apple store" of pot for its tablets next to every product displaying information about potency, strains and more, brings in 2.5 million visitors a year at its 16th Street Mall location in downtown Denver.
Perino isn't a marijuana enthusiast, but the financial opportunities were too good to pass up after Colorado became the first state to legalize recreational marijuana in 2012. Dispensaries began opening in 2014. After working in the building industry for 15 years, Perino made the switch.
"There were CEOs, CFOs, from pharmacy, banking, real estate," Perino said. "People were leaving their jobs to get into this industry, and I think that if they are getting into it, maybe they know something I should know. ... It's kind of being compared to the tech boom of several years ago and to be at the forefront of it is really exciting."
Colorado alone brought in about $79 million from taxes and fees on the marijuana industry in fiscal year 2015. On the fringes, ancillary business also have found money-making niches to fulfill the needs of marijuana businesses.
Cultivators need high-wattage lights to grow cannabis indoors. States have contracted seed-to-sale tracking systems to try and stop cannabis from slipping to the black market. Limousine companies shuttle paying customers from dispensary to dispensary.
Legal Marijuana Boosts Vape Shops' Bottom Line
J.B. Woods, co-owner of Greenpoint Insurance Advisors LLC, is based in the Denver area but specializes as an insurance broker for dispensaries nationwide. It's a necessity for companies storing marijuana by the pound and cash by the bundle.
"There are a couple of states who have made it really very clear that insurance is an important part of the licensing process," Woods said.
The security danger spawned by the all-cash industry also has created a secondary market of its own. Companies provide security cameras, alarm bells and guard dogs.
As acceptance spreads, industry matures
When the ArcView Group first started hosting conferences to connect marijuana businesses with cautious early investors, the events reinforced quite a few stoner stereotypes, ArcView CEO Dayton said.
He described a ragtag lot who cared more about smoking weed than making money off it. Many of the presenters looked uncomfortable in suits and ties and floundered through their pitches.
ArcView events now draw a sharply dressed mix of professionals who whip through presentations with practiced precision - a reflection of the maturing industry, Dayton said.
As more states legalize, shifting social attitudes have opened the door for a host of white-collar professionals who once shied away at the mere mention of marijuana. Lawyers are leaving their corporate firms behind. Bankers are closing down their tills. Business is serious. Business is brisk.
From Hawaii to New York, 23 states across the country, plus Washington, D.C., have approved marijuana for medical use, with Alaska, Colorado, Oregon, Washington state and Washington, D.C., legalizing recreational marijuana, as well.
The legalization tide has flooded the marijuana market with entrepreneurs who must distinguish themselves amid rising competition.
There are hookahs and bubblers, volcano vaporizers and percolated bongs. Consumers slurp down THC-infused ice cream and gnaw on gummy bears. They slather on lotions permeated with marijuana oil and dollop out droplets of tinctures, cannabis extracted with alcohol. The secondary market of ancillary businesses has filled the gap to meet a growing demand for the latest and greatest way to get high.
Although it can be difficult to get into the dispensary business - with steep initial investments and time-consuming licensing - those who try said the potential profit in a growing market makes the endeavor worth it. State licenses can be hard to come by, but once in hand, caps on dispensaries can limit competition and provide a big payday.
Nearly two years ago, Illinois approved a medical cannabis pilot program. Dispensaries plan to open this year to serve the state's 2,600 approved patients.
Brad Zerman, who plans to open one of the state's 56 dispensaries, said he sees it as a smart business investment.
"I'm an entrepreneur. I've had businesses since I was 23 years old," Zerman said. "Everything about this business is difficult. You really just have to be up for a good challenge."
Though social attitudes are leaning more in marijuana's favor, the majority of traditional investors - who tend to be more conservative with their choices - have kept their caution.
Boston-based Dutchess Capital, a global money manager of more than $2 billion in assets, moved into marijuana in 2012, one of the first companies to invest in the field.
Doug Leighton, managing partner at Dutchess, said it "took a very long time to get comfortable, given the federal government's stance" on the Schedule 1 drug - a drug that has no medicinal benefits and can't be legally bought and sold. It makes investors wary of potential federal prosecution. But the potential profits outweighed the risk.
"We did our homework," Leighton said. "But it's weed. We're not going to lose. How are we going to lose?"
Headaches abound for marijuana entrepreneurs
Though promises of profit have lured entrepreneurs to marijuana, making money has proven anything but easy for many. Steep initial investments sting. Heavy taxes cut into bottom lines. The know-how to navigate complex regulations can separate those who make it from those who don't. For every successful business, many more fail, experts said.
"We've got a room full of banker's boxes with files from businesses who didn't succeed," said Woods, the Denver insurance broker.
To even apply for a license, many municipalities require dispensary hopefuls to lease a suitable location beforehand, so owners pay rent for months without knowing for sure if they'll ever be able to open.
Banking solutions are few and far between, and the Department of Justice has issued strict guidelines for any bank that touches marijuana proceeds. Because the federal government categorizes marijuana as an illegal, Schedule 1 drug, financial institutions are reluctant to deal with it, fearing federal repercussions.
Pot Risk Vs. Profit: Bankers Cautious of Marijuana Operations
Many in the industry must stuff stacks of currency in safes and pay state and federal taxes in cash.
Taxes, too, are tough. On tax returns, marijuana companies can't write off business expenses tied to the drug. Other lines of work rely on such tax breaks to make a profit.
Finding a suitable location has proven another challenge for marijuana businesses.
Fledgling Marijuana Industry Pressing Through Labor Pains
Strict zoning laws on the local level have generated a lucrative real estate market for compliant locations. In pot hotspots such as Denver, real estate prices have risen to reflect the growing demand.
A former commercial real estate broker, Matt Chapdelaine, co-founder of Chicago-based HerbFront, the United States' first online cannabis real estate listing service, estimates the fair market price for marijuana-zoned properties at 150 percent of their typical market value. Only 1 to 2 percent of all properties in most areas work for marijuana, he said.
The marijuana businesses that go on to do well and look to expand are often hampered by a shortage of sources for funding.
Some companies have turned to public offerings to build up capital, but reputable ones are few and far between, according to industry analysts and market research. Many are full of over-valuations and empty promises of impossible returns, said Michael Swartz, an analyst with Viridian Capital, a marijuana-focused investment firm.
"It's important in this industry to do your homework," he said. "There's an opportunity, but there are a lot of challenges and risks involved."
Bigger players could uproot smaller businesses
The marijuana economy of today - full of mom-and-pop shops and small-scale investors - could look a lot different a few years from now.
Industry experts liken pot today to alcohol in its early post-Prohibition years, full of early adopters trying to corner their own slice of the market before the bigger players move in.
There are interests within more than a dozen states pushing legalization initiatives in the 2016 election. Though the majority haven't yet gathered enough signatures to make it on the ballot - it's still early - the industry expects more states to follow the lead of Alaska, Colorado, Oregon and Washington in legalizing marijuana.
As the market continues to grow - ArcView projects a $10.8 billion legal sales market by 2019 - interest from bigger players may pick up.
And if the federal government does make marijuana legal, the changes could be even bigger.
Dayton, the CEO of ArcView said he expects other highly regulated industries, like restaurant chains and food manufacturers, to snap up marijuana companies once it's safer to do so.
"Think of the wine market," he said. "Cannabis is just like that. Sure, there are the big producers, but there's also the small and the medium size. You're certainly going to see some consolidation."
A battle over branding looms over cannabis, Swartz said. The industry is still in its infancy, too young to have the marijuana equivalents of the Apples and the Walmarts and the Coca-Colas. Especially with restrictions placed on advertising most everywhere, it's too soon to tell which early starters will become go-to brands, but it looks to be a matter of time until consumer favorites emerge.
"It's going to be the brands," Swartz said. "It's going to be the Bacardi, the Grey Goose. That's where you're going to see the biggest market. It's going to be about quality, but what's even more important is that brand."
Without a solid and well-known specialty, mom and pop marijuana businesses will be swallowed up once bigger players move in, he said - it's just a matter of time.
http://www.nbcnews.com/storyline/legal-pot/dotcom-2-0-marijuana-commerce-blossoms-challenges-abound-n414036
First Las Vegas Valley marijuana dispensary to open Monday
By Eric Hartley
Las Vegas Review-Journal
After months of delays, Clark County's first legal medical marijuana dispensary plans to open Monday.
Euphoria Wellness got final state and county approvals this week, a spokesman said.
For its first two days, Euphoria will sell only to invited customers who pre-registered. On Wednesday, it will open to anyone with a state-issued medical marijuana card. The dispensary is at 7780 S. Jones Blvd.
Waiting for commercial growers' crops to be ready caused unexpected delays for the dispensary, leading to frustration for patients and advocates. There are 9,542 patient cardholders in Nevada, more than 6,700 of them in Clark County.
Euphoria's owners long wanted it to be the first dispensary in the state to open. They once planned to begin sales as early as February or March.
Since commercial growers' crops were not yet available, they planned to open using marijuana bought from home growers. That's allowed under state law, but Euphoria soon ran into a problem.
Clark County officials first told the dispensary it could buy only 2½ ounces from each home grower. They cited a provision in state law saying a patient can only possess that much "usable marijuana" at one time.
Such small amounts would make marijuana prohibitively expensive to test and would've made it virtually impossible for the dispensary to gather enough to open for business.
State Sen. Tick Segerblom, D-Las Vegas, who sponsored the bill to allow dispensaries, said that kind of limit on patient sales was never intended by the Legislature.
Euphoria considered suing the county, but ultimately nixed its plan to use home-grown marijuana and will open next week with commercially grown crops.
A dispensary in northern Nevada, Silver State Relief in Sparks, beat Euphoria to the punch. It became the first legal dispensary in the state on July 31.
http://www.reviewjournal.com/news/pot-news/first-las-vegas-valley-marijuana-dispensary-open-monday
Nevada Marijuana Licenses for Sale!
By Phillip Silvestri on August 18, 2015
Posted in Business Basics, Legal Issues, Licensing, Medical Cannabis, Nevada
Well, it’s official. The secondary market we predicted would result from SB 276 has reared its head, and in spectacular fashion. For those of you who didn’t catch our previous posts, SB 276 reapportioned unused dispensary licenses, largely in response to ongoing litigation in Las Vegas. In a last-minute oral amendment, a section was added to allows for selling all or a portion of a Medical Marijuana Establishment and the transferring of the appropriate license to the purchaser. Though the regulations on this have not yet been published, it looks like companies will need to sell all or a portion of the company itself, and not just their Nevada cannabis license.
Due to this newly-created market, nearly every day we get a call from an investor or licensee looking to invest in or sell here in Nevada. People are interested in getting into the industry in Nevada due to a strong likelihood of legalization in 2016. With the opportunity to get in before recreational cannabis becomes legal, these licenses have a huge upside potential.
Licenses are being “sold” for millions and licenses are being sold for nearly nothing. This is because certain licenses are valuable while others just aren’t. I put “sold” in quotes because the smarter buyers are making their purchases contingent on their actually being approved by the Department of Public and Behavioral Health to hold the license.
LICENSE TYPE
Dispensaries are the most sought-after licenses on the secondary market, with very few coming up for sale. Nevada initially approved 55 licenses across the entire state. Once SB276 fully plays out we will know the exact number of licenses with both state and local approval. For now though, we know it is not very many. Further, dispensaries are the most visible of the licenses, which can create brand recognition in advance of legalization.
Many more cultivation facilities were approved than all other licenses, with a total of about 180. As the most abundant license type issued, they are also the most commonly marketed for sale.
Production licenses (about 115 issued) and lab licenses (only 17 issued) are seldom on the market, and to date we are unaware of any sales of such facilities. We have been involved in negotiations for production and lab licenses, but given their scarcity, their value seems higher than most are willing to pay.
LOCATION, LOCATION, LOCATION
Location plays a major role in valuing a license. For dispensaries, the location of the business largely dictates the demographics of its customers. Though some patients will travel for their medicine, most will go to the dispensary closest to them. Dispensaries in more affluent parts of town (particularly if we are talking about Las Vegas) are able to cater to a more affluent clientele and command higher prices for their product. The dispensary licenses for the higher profit locations will likely sell at higher prices.
On the other end of the spectrum, many production and cultivation facilities were issued licenses to operate in the Apex area of North Las Vegas. Many of the locations in Apex lack water and power, and we have been hearing that NV Energy is not subsidizing installation of lines to the facilities. The costs of such installation can be prohibitive and as both water and power are obviously necessary to cultivate marijuana the lack of such utility tie-ups can render certain licensees virtually worthless. The one saving grace for those “left in the dark” is that they may be able to move to a better location if they can secure local approval at the venue to which they are seeking to move. The process for such a move has not been made public as of yet, however, so the ability to move is speculative at this point.
FACILITY SIZE
The State of Nevada expects that licensees will follow the plans submitted as part of the initial application process. Some license applications for cultivation facilities proposed hundreds of thousands of square feet, while others came in at as little as 5,000 square feet. The amount of marijuana that can be grown is pretty much directly proportionate to the size of the facility. And the amount of marijuana one can grow is closely tied to the amount of profit one can realize from growing.
So now what?
Given that the secondary market has arrived in Nevada, we firmly believe it is here to stay. But both buying or selling a cannabis license in Nevada (as in any other state) is heavily controlled by regulation, making such transactions both complicated and risky. The fact that selling such a license is not technically allowed in Nevada until October 1 and will require Division approval, makes these transactions even more complicated. For a review of the basics of what is typically involved in buying and selling a cannabis license, we urge you to read Buying and Selling Marijuana Business Licenses and trust us when we say that this sort of thing is not for the amateurs or the neophytes.
http://www.cannalawblog.com/nevada-marijuana-licenses-for-sale/
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Medical Marijuana is Legal in Las Vegas, but Nowhere to Buy It
By Mike Heuer | Courthouse News Service
August 17, 2015 7:56 AM
LAS VEGAS, NV — Nevada defrauds patients by charging annual fees for medical marijuana identification cards, but refuses to license dispensaries in and around Las Vegas, a medical marijuana cardholder claims in a federal class action lawsuit.
John Doe sued the state, the governor and the Department of Health and Human Services, which has the power to issue licenses for marijuana dispensaries but has not done so in Clark County.
The 2 million residents of Clark County, home to Las Vegas and Henderson, account for more than two-thirds of the population of Nevada.
Doe claims that forcing Nevadans to get prescription cards but forcing them to buy the drug on the street constitutes fraud, unjust enrichment, unequal taxation and violation of equal protections.
Nevada amended its constitution in 2001 to allow medical use of marijuana and distinguished medical marijuana from street varieties by establishing testing, purity and labeling standards for it.
But aside from growing one’s own, Doe says, the state provided no way for patients to get pot other than “from the local street corner drug dealer” until 2013, when it enacted laws to license and regulate medical marijuana dispensaries.
Patients must get a prescription from a doctor and pay a fee to the state to get a medical marijuana card. The cards expire in a year, requiring another trip to the doctor and another fee to the state, Doe says.
The state “engaged in fraud by collecting fees and issuing registration cards when they had not licensed nor had they planned on licensing dispensaries during the time covered by the cards,” Doe says.
Ninety companies applied for medical marijuana business in Clark County in 2014, Doe says, and the county issued several business licenses, but the Nevada Department of Health and Human Services did not issue any licenses to dispensaries.
Doe says there is nowhere in Clark County to test the contents of medical marijuana to determine therapeutic benefits or dosage levels, no place to get objective data about medical marijuana, and no place to buy it or buy seeds.
In short, Doe says, the state sells medical marijuana cards that expire in a year, “knowing that no dispensary would be licensed during that time.”
After paying money to comply with the law, Doe says, he and others continue to experience “prolonged pain and suffering.” Doe says he has had migraine headaches since he was 15, and that, at his doctor’s suggestion, he used marijuana to treat it, successfully.
He seeks class certification, declaratory judgment, refunds of the fraudulently obtained fees, nominal damages and costs of suit.
He is represented by Jacob Hafter, who was not immediately available for comment. Nevada officials did not reply to requests for comment.
There are no licensed medical marijuana dispensaries operating in Clark County, but several online sites promote delivery services and Nevada voters in 2016 will vote on a measure that would legalize recreational marijuana.
Silver State Relief, the state’s first dispensary, opened on Friday outside of Reno. Nevada has about 9,000 medical marijuana cardholders, and the state has reciprocity agreements with other states that issue medical marijuana cards.
Silver State Relief is limiting customers to ½ oz. due to limited supply. It planned to open on Tuesday, Aug. 11 – the day before Doe filed the lawsuit – but had to wait for test results. The four types of marijuana on its online menu list THC contents of 15.3 percent to 22.7 percent, all at $195 per ½ oz. – taxes included.
http://www.thedailychronic.net/2015/46162/medical-marijuana-is-legal-in-las-vegas-but-nowhere-to-buy-it/
Momentum continues to build for CARERS Act
It's been five months since the historic medical marijuana bill -- the CARERS Act -- was introduced in the Senate, and as Congress enjoys its summer recess, it's a good time to reflect on where the bill is positioned as we head into the second part of the year.
The legislation was introduced in March by Sens. Booker, Paul and Gillibrand, and received huge media attention, including a lead editorial in the New York Times in support of the bill, the day after it was introduced.
The advocacy groups in Washington, D.C. pushing CARERS have spent much of a very successful summer building support for the bill by advocating for the passage of three Senate appropriations amendments that mirror provisions of CARERS. These spending amendments would take effect for one year only, so they are less impactful than the legislative changes we would see through the passage of CARERS, but nonetheless they allowed us to test the waters on support for major provisions of the bill.
The key takeaway from these votes is that the Senate is ready to debate medical marijuana, and a majority would approve the CARERS Act if it was brought to the floor for a vote.
The adoption by the Senate of three amendments that are almost identical to provisions in the CARERS Act was a welcome development, not least because every amendment garnered bipartisan support. Perhaps the most important part of CARERS is the section that allows states to set their own medical marijuana policies.
The amendment mirroring this provision passed the Senate Appropriations Committee 21-9, with seven Republicans supporting. The size of the victory demonstrates that, contrary to what some may have said, the Senate is ready to tackle full medical marijuana. Another amendment allowing veterans access to medical marijuana passed 18-12, and an amendment allowingmarijuana businesses to access banking services passed 16-14.
We've also seen Executive action reflective of reforms included in CARERS. The Obama Administration recently removed a large research barrier -- the PHS Review -- that CARERS sought to eliminate.
Senators Grassley and Feinstein, whose buy-in is important for CARERS to progress, have gone from being opponents of medical marijuana to holding a recent hearing on the issue, and drafting a Time magazine op-ed on the need for more research and access to certain types of medical marijuana. Sen. Feinstein also secured language in a separate funding bill calling for more research and recognizing "the potential therapeutic benefits that marijuana and its components may bring to patients with serious medical conditions, including seizures, multiple sclerosis, Parkinson's disease, Alzheimer's, substance use disorders, and neuropathic and cancer pain." Sen. Grassley is a crucial player in this process, given that he chairs the Judiciary Committee, through which CARERS must pass.
The bill itself has a lot of momentum behind it -- 15 cosponsors, including 12 Democrats, two Republicans and one independent. The recent addition of Chuck Schumer -- the likely future head of the Senate Democrats and a key Judiciary member -- was another boost. And the bill continues to be regularly praised in the media, including in last Sunday's New York Times editorial.
The next few months will see advocates turn their attention to translating the Republican support for appropriations amendments into cosponsorship for CARERS -- something we need your help with. Advocates will also continue our dialogue with Senator Grassley and push for a Judiciary Committee hearing and vote on CARERS, which would clearly pass the Senate if allowed to move forward. Let's hope the next five months are as successful as the last five.
Click here to contact your Senator and ask him/her to sponsor the CARERS ACT.
Michael Collins is a policy manager for the Drug Policy Alliance.
This piece first appeared on the Drug Policy Alliance Blog: http://www.drugpolicy.org/blog/momentum-continues-build-historic-federal-medical-marijuana-bill
Lawsuit challenges Nevada marijuana card fees
By Carri Geer Thevenot
Las Vegas Review-Journal
A 42-year-old man with a history of migraine headaches has filed a potential class-action lawsuit against the state of Nevada over the fees it charges for medical marijuana registration cards.
The complaint, filed Thursday in Clark County District Court, says the state has engaged in fraud and and unjust enrichment by accepting fees for registration cards without giving patients a legal source for obtaining marijuana.
"This lawsuit also raises critical constitutional questions about health care and the equal protection of our citizens' access to health care," the complaint says.
Las Vegas attorney Jacob Hafter represents the plaintiff, identified only as "John Doe," who filed the 20-page complaint "on his own behalf and on behalf of a class of those similarly situated."
Spokeswoman Patty Cafferata said the Nevada attorney general's office does not comment on pending litigation.
The lawsuit specifically names the state Department of Health and Human Services and Gov. Brian Sandoval as defendants.
"While the defendants have been accepting the fees for the registration cards, and have been issuing such, they have failed to license any dispensaries in Clark County, to date," the complaint says.
In fact, the state has issued a final registration certificate to one Clark County dispensary, Euphoria Wellness, but the business has not opened amid disputes with the county about how it can obtain marijuana.
The lawsuit seeks a ruling that the fees associated with the registration cards are a violation of the equal protection clause of the U.S. Constitution, "in so much as no patient has to pay a tax in order to be able to receive any other treatment regime prescribed or recommended by a licensed physician."
In addition, the lawsuit seeks a ruling that the creation of a registry of patients is a violation of the same clause, "in so much as no patient has to register with the state in order to be able to receive any other treatment regime prescribed or recommended by a licensed physician."
The complaint also says the payment of registration fees amounts to an unconstitutional taking of private property.
Ultimately, Hafter wrote, "this case will require this court to address the next fundamental rights question — whether access to health care, in whole or in part, is a fundamental constitutional right."
http://www.reviewjournal.com/news/pot-news/lawsuit-challenges-nevada-marijuana-card-fees
TRTC 2Q 2015 Conference Call Recording
http://smallcapvoice.com/blog/terra-tech-corp-schedules-second-quarter-2015-earnings-release-and-conference-call/
Terra Tech Announces Record Revenue Quarter $5 million, Up 35% Year Over Year
GLOBENEWSWIRE 4:10 PM ET 8/12/2015
Newport Beach, Aug. 12, 2015 (GLOBE NEWSWIRE) -- Terra Tech Corp(TRTC) is pleased to announce the filing of its financial results for the quarter ending June 30, 2015. Total revenues generated for the second quarter totaled $5,024,290 compared to $3,711,801 for the quarter ended June 30, 2014, an increase of $1,312,489. The increase was primarily due to revenue generated by Edible Garden for the sales of its herbs and floral products and IVXX from the sale of its cannabis products. The full 10-Q filing is available on the SEC's website at http://edgar.sec.gov/
Specific results figures for the quarter ended June 30, 2015 include:
Total revenues generated from the sales of Edible Garden and IVXX for the quarter ended June 30, 2015 totaled $5,024,290, an increase of 35% from the quarter ended June 30, 2014.
Gross profit for the quarter amounted to $262,614. Gross profit increased $362,251 for the quarter ended June 30, 2015 compared to a negative gross margin of ($99,637) for the quarter ended June 30, 2014.
Selling, general and administrative expenses for the quarter ending June 30, 2015 were $3,361,846, compared to $3,892,077 for the second quarter 2014 or a decrease of $530,231.
After selling, general and administrative expenses of $3,361,846, an operating loss of $3,099,232 was realized for the quarter. Operating losses decreased $892,482 or 22.3% compared to the second quarter of 2014 operating loss of $3,991,714.
The net result for the quarter ended June 30, 2015 was a loss of $2,756,576 or $0.01 per share compared to a loss of $4,555,077 or $0.03 per share for the second quarter of 2014. The net loss for the second quarter of 2015 decreased by $1,798,501 or 39.4% as compared to the second quarter of 2014.
"We have been working to grow both our topline revenue and to simultaneously improve our bottom line operating results. We are proud that the Edible Garden division is now cash flow positive," explains Derek Peterson, CEO of Terra Tech. "During the quarter we realized expansion with Walmart and other retailers with our Edible Garden ® brand and put into place additional hydroponic technologies which increased efficiencies within the greenhouse. These investments have helped improve our bottom line results. In addition, we have continued to experience strong brand acceptance and expansion on our IVXX ™ line of cannabis concentrates throughout the California market. California is looking at fundamental legislative changes in 2016 that may allow cannabis businesses to operate in a for-profit environment. We are working with political leaders and industry organizations to assist in that process. In the meantime we are able to utilize the cash flow from IVXX to continue to grow and market the brand. We are also excited that we began construction on our flagship Las Vegas dispensary and look forward to its opening in Q4 of this year. We have been working with other cultivators and producers to make certain we have high quality medications to offer to our patients in Nevada. We are proud of our growth but in no way satisfied with where we are at fundamentally. Management is working to continue to improve operations quarter by quarter and we think Nevada’s operations should have a dramatic effect on our fiscal improvement.”
Key developments in the quarter:
IVXX added 6 new retail dispensaries in California.
The Company applied for a $300,000 Clean Energy Grant that was subsequently awarded in the first part of Q3, 2015.
Edible Garden expanded their line of living herbs to 5 Walmart distribution centers.
MediFarm began construction on their Western Ave dispensary location.
Management will continue to make an effort to lower operating expenses and increase revenue. The company will continue to invest in further expanding operations as well as a comprehensive marketing campaign with the goal of accelerating awareness of the company's product lines.
Secondary Market for MMJ Business Licenses Developing in Nevada
By Tony C. Dreibus
Scott Boyes doesn’t see the crowds of people walking up and down the Las Vegas Strip at all hours of the day as tourists. He sees them as potential customers.
The chief executive officer of Toronto-based Canadian Bioceutical Corp. announced Monday that his company has signed a letter of intent to purchase a Nevada medical marijuana cultivator to capitalize on the state’s MMJ program, which allows registered patients from other areas to buy cannabis while visiting.
“I’m sitting here in the hotel looking down Las Vegas Boulevard and here it is a (weekday) and there are tens of thousands of people walking around,” said Boyes, who wouldn’t divulge the name of the company his firm purchased nor how much it paid. “We like it here.”
A number of companies and wealthy entrepreneurs are hoping to snap up provisional licenses in Nevada – or the businesses that won them – after the state’s governor signed a law in June allowing the transfer of MMJ permits, creating what could become a lucrative secondary market.
Licenses to grow, process and dispense medical marijuana are expected to bring a tidy sum given the potential market, which includes tourists with medical marijuana cards from other states and countries. The possibility of recreational marijuana legalization in Nevada next year and the relatively friendly regulatory environment in the state has also piqued the interest of many companies, entrepreneurs and investors.
The state still must hammer out regulations on license transfers, and the law allowing them doesn’t take effect until Oct. 1. But there appears to be “a fair number” of companies putting their licenses up for sale now, said Boyes, who is looking to purchase or partner with four or five companies that hold licenses in Nevada.
Some of these licenses have been listed recently for millions of dollars, though it’s unclear whether any have sold for that much.
“There are definitely people out there interested in getting into the Nevada industry,”said Amanda Connor, an attorney who works with cannabis companies. “So there’s the potential to make a lot of money.”
Targeting Tourists, Recreational Market
On the surface, the MMJ market in Nevada is relatively small. Nearly 9,500 patients are registered with the program, which is tiny compared to some other states.
But dispensaries – the first of which opened recently – could capture tens of thousands of visiting patients (and potentially even more) as well. Las Vegas alone attracts more than 40 million visitors a year. If even a sliver of them are MMJ patients, dispensaries could have an ample out-of-state market to tap.
While that alone makes entering Nevada’s budding marijuana market alluring, it’s not just tourists that would-be cultivators, processors and dispensary owners in the state are targeting.
A passage written into a ballot measure set to go before voters in November 2016 says only individuals or companies that hold medical marijuana establishment registration certificates will be allowed to even apply for rec permits for 18 months should the initiative pass.
That would give existing MMJ license-holders a huge head start on the new market.
“It’s almost like having a golden ticket in the recreational market assuming that initiative passes,” Connor said. She added that even if recreational doesn’t go through, Nevada’s “reciprocity” rule allowing dispensaries to serve out-of-state patients – and therefore tap the state’s massive tourism market – makes the licenses highly valuable.
While it may seem counter-intuitive to sell a license that seems to have so much promise, those who landed licenses may be short of funds to continue building out cultivation sites or dispensaries, lack the skills they need to properly operate a cannabis company, or perhaps have run into problems with business partners, Connor said.
Cashing Out
Some companies with provisions licenses are already apparently looking to cash out.
One cultivation license was recently on the block for about $4 million, according to industry experts interviewed by Marijuana Business Daily. Boyes said one company he spoke with said it is selling its dispensary license for $10 million.
While an eight-figure price tag may be overly expensive, selling a cultivation permit for $4 million isn’t out of the realm of reason – even if the company only spent $500,000 obtaining the license, said Adam Bierman, managing partner at MedMen, a cannabis licensing and management firm.
“I don’t think it’s ridiculously priced at all,” he said. “For cultivation, there were 180 or so licenses issued statewide, which is a very small number for a state serving 50 million people at the end of the day because of reciprocity and rec cannabis in 2016. There’s tremendous value. Five years from now they’re going to be worth lot more than $4 million.”
Much of that will depend on whether Nevada legalizes recreational marijuana next year, however.
State, Local Approval
There will be some serious hurdles involved in obtaining a license from a company as well. Buyers – both those that purchase licenses and those that acquire companies with permits – will have to go through the same rigorous licensing process the original owners went through, Connor said.
They also will not only have to get approvals from the state to operate a marijuana business, but from local governments as well.
State officials will draft rules governing license transfers, as will municipalities. So far, most cities and counties haven’t even started discussing the laws, Bierman said, which could turn off potential buyers.
Boyes of Canadian Bioceutical said he is confident the regulations will be in place soon after the Oct. 1 implementation of the law. While Canadian Bioceutical hopes to close the purchase by the end of this month, it must wait until Oct. 1 to actually get the license to grow marijuana from the company it’s purchasing, as that’s when the new law on license transfers takes effect.
Opinions vary on whether cultivation licenses or dispensary licenses are worth more. Some say that because of the lower number of dispensaries currently allowed in the state, those permits are more valuable. Others say that with recreational marijuana likely being approved next year, cultivation permits will skyrocket in value.
Someone who holds all three licenses – those for cultivation, processing and dispensing – and is looking to sell is in the best position, said Brandon Rexroad, the co-founder of Rexroad McKee, a company that has permits in the state of Nevada and also grows, process and sells cannabis in Oregon.
“If you have them all, you could do a quick turnaround and easily make at least a million dollars,” he said.
http://mjbizdaily.com/lucrative-secondary-market-mmj-business-licenses-developing-nevada/
Terra Tech Corp. Schedules Second Quarter 2015 Earnings Release and Conference Call
Newport Beach, Aug. 11, 2015 (GLOBE NEWSWIRE) -- Terra Tech Corp (TRTC) today announced that the Company will report its second quarter 2015 financial results on Wednesday, August 12, 2015 at 1:05 PM Pacific Standard Time. The Company will host a shareholder conference call with senior management to discuss the financial results the same day at 1:30 PM Pacific Standard Time.
The conference call will include a Q&A session so that investors can have the opportunity to get their questions answered directly from the Terra Tech Corp management team. In order for an investor to have a better chance of receiving an answer to their question on the live call, the Company encourages shareholders to send their questions ahead of time to info@smallcapvoice.com.
Questions can also be sent during the call to the same email address, but the company has no way of predicting what the question volume will be during and immediately after the call. The call in number is 1-857-232-0157. Enter conference code 422095 when prompted by the system. A recording of the call will be released for those who cannot attend.
- See more at: http://globenewswire.com/news-release/2015/08/11/759794/0/en/Terra-Tech-Corp-Schedules-Second-Quarter-2015-Earnings-Release-and-Conference-Call.html#sthash.Q784Teb2.dpuf
State Lawmakers Want Feds To Respect Their Marijuana Laws
By Matt Ferner
National Reporter, The Huffington Post
“State lawmakers just sent a message to Congress that could not be any clearer."
State lawmakers agree: The federal government should not interfere with states that set their own marijuana laws.
The National Conference of State Legislatures, a nongovernment organization composed of state lawmakers and their staffs, passed a resolution Thursday urging the federal government to amend the Controlled Substances Act and other federal laws "to explicitly allow states to set their own marijuana and hemp policies without federal interference" and to refrain from undermining state marijuana and hemp laws.
Additionally, the resolution acknowledges that lawmakers in different states will have differing views on how to treat the plant, but the NCSL members agree that "states and localities should be able to set whatever marijuana and hemp policies work best to improve the public safety, health, and economic development of their communities."
The passage of the resolution represents a strong statement from state lawmakers. It was passed on voice vote by a majority of participating lawmakers from 75 percent of the states represented at the conference. Mick Bullock, director of public affairs for the NCSL, told The Huffington Post that 49 member jurisdictions were represented during the vote. Member jurisdictions include all states, the District of Columbia and U.S. territories.
Earlier in the week, the resolution passed a committee vote unanimously, 21-0.
Marijuana policy reformers praised the passage of the resolution.
“State lawmakers just sent a message to Congress that could not be any clearer,” Karen O’Keefe, director of state policies for the Marijuana Policy Project, said in a statement.
Tom Angell, chairman of Marijuana Majority, shared similar sentiments and added that while the Obama administration has been helpful in accommodating states that want to forge their own policies regarding marijuana, "overarching federal prohibition laws still stand in the way of full and effective implementation."
To date, 23 states, as well as the District of Columbia, have legalized medical marijuana, while 17 others have legalized the limited medical use of cannabis extracts, frequently used to treat debilitating seizures. Four states and D.C. have legalized recreational marijuana. (The District still bans retail sales.)
But marijuana, be it medical or recreational, remains prohibited under federal law, and states rely on Department of Justice guidance urging federal prosecutors to refrain from targeting state-legal marijuana operations.
While federal prosecutions of medical marijuana patients and providers have slowed more recently, the Drug Enforcement Administration and several U.S. attorneys under the Obama administration have raided marijuana dispensaries and sent people to prison, even though they complied with state laws. According to a 2013 report released by advocacy group Americans for Safe Access, the federal government has spent almost $80 million each year -- more than $200,000 per day -- cracking down on medical marijuana.
A majority of Americans appear to be on the side of the NCSL resolution. Multiple recent polls have found most Americans support the legalization of recreational and medical marijuana. And a report from centrist think tank Third Way found that a majority of Americans want each state to be allowed to decide its own marijuana laws without federal interference. It also found that most Americans would support a new federal law that would make those marijuana-legal states a "safe haven" from federal laws against cannabis, allowing them to act outside federal policies on the substance.
http://www.huffingtonpost.com/entry/state-marijuana-laws_55c3a74de4b0d9b743db4985?ncid=txtlnkusaolp00000592&kvcommref=mostpopular
Cities eye more pot dispensary licenses
Posted August 5, 2015 - 1:24pmUpdated August 5, 2015 - 5:37pm
By James DeHaven
Las Vegas Review-Journal
Medical marijuana dispensaries are still months away from opening in Southern Nevada and local government officials are already trying to get licenses for more of the expected big-money makers.
Las Vegas, North Las Vegas, Henderson and unincorporated Clark County are each in line to collect thousands — if not hundreds of thousands — of dollars in application, business and license fees from pot shops.
That's doesn't include the fees from medical pot growhouses, production facilities and testing centers, or the sums municipalities will get from each of those establishments in local property and state-administered sales taxes.
All of which could help explain why the past month has seen officials in both Las Vegas and Henderson ask about acquiring at least one of eight additional pot shop certificates headed to the county under Senate Bill 276.
That legislation split up 11 dispensary licenses that would have gone unused in rural counties and cities that took a pass on the green rush. Most went to Clark County, one license each went to unincorporated Washoe County, Reno and Sparks.
Las Vegas City Manager Betsy Fretwell cited the bill in a letter sent to the county in late July, explaining it was her city's understanding that the County Commission "may entertain requests" for the new licenses.
She said she got the idea from Henderson City Attorney Josh Reid, who penned a similar inquiry only a few weeks earlier. A Henderson spokesman said the city only pursued a license because it had been erroneously shorted one by state regulators — a mistake since amended by a District Court judge. He said Henderson "no longer plans to pursue" additional dispensaries from the county.
Reached for comment Tuesday, North Las Vegas Community Development Director Greg Blackburn said his city would consider making a request for one of those licenses.
A day later, Las Vegas leaders voted to formalize Fretwell's July 22 overture, directing staff to draft a letter asking the county for half of its eight new pot shops.
That despite Clark County's view that it's too early to even consider the possibility of divvying up extra licenses.
Leaders there are still wading through a messy, monthslong dispute with dispensary owners and Nevada regulators over provisional pot business licenses they approved weeks before the state signed off on its half of a two-tiered medical marijuana approval process.
It will be another month before county commissioners reconsider eight dispensary applicants rejected by the county and subsequently approved by the state Division of Public and Behavioral Health. Only 10 dispensary applicants have gained needed approvals from both jurisdictions to set up shop, even though the law allows up to 18 dispensaries in unincorporated parts of the county.
Until that matter is settled, County Commission Chairman Steve Sisolak figures there's no point in considering city requests for more licenses.
He's not sure county leaders could give away those dispensaries if they wanted to.
"I talked to the (district attorney's office) and they don't even know if it's allowable," Sisolak said. "All we can do is wait and see."
Longtime medical marijuana advocate and Las Vegas City Councilman Bob Coffin, who uses the drug to help relieve pain, said cities have a legal right to seek the pot shop certificates, if not necessarily a right to take them.
"I don't know if they're required to (give away licenses), but they may not have the demand," he said. "My main concern is that we open the (dispensaries) we have."
Besides, he added, it never hurts to ask.
http://www.reviewjournal.com/news/pot-news/cities-eye-more-pot-dispensary-licenses
1st Legal Medical Pot Sold in Nevada 15 Years After Approval
BY SCOTT SONNER AND MICHELLE RINDELS
ASSOCIATED PRESS Mon Aug 03, 2015
SPARKS, Nev. (AP) -- Fifteen years after Nevadans voted to legalize it, medical marijuana was sold legally in the state for the first time Friday at a dispensary in a strip mall about 5 miles east of downtown Reno.
Dressed in polo shirts, tie-dyes and button-downs, about 75 people with medical marijuana cards lined up outside Silver State Relief, between a sub shop and pizza place in Sparks, to be among the first to buy as much as a half-ounce of pot for $195.
"It smells good in there," said Dana Metz, 64, a retired General Motors worker who said he suffers from back pain, insomnia and anxiety. He was the first in line two hours before the doors opened just after 10 a.m.
"Like a kid in a candy store," Metz said with a smile as he emerged with a package of pre-rolled cigarettes. "It's great. It's clean. It's very professional. Everything is labeled, and the people are knowledgeable and very helpful."
Unless the next Legislature takes action sooner, Nevadans will consider another ballot measure in 2016 to legalize recreational use of marijuana.
They approved medical pot in 2000, but the law lacked language to establish a system to sell or distribute the drug until 2013. Before that, anyone authorized had to grow their own - up to 12 plants per person - or find it some other way.
"The politicians just didn't have the will to do what the people wanted," said state Sen. Tick Segerblom, a major proponent of marijuana legislation. "Why the Legislature could not get behind this blows my mind."
Nevada is among 23 states that allow medical marijuana, along with Washington, D.C., and Guam.
On average it takes nine to 18 months for stores to open following legislative approval, said Karmen Hanson, marijuana analyst for the National Conference of State Legislatures.
Of the 25 states and territories that approved medical pot, most are up and operational. "By two years, there's usually something," Hanson said.
As for recreational pot sales, customers can buy it in Washington and Colorado and eventually in Alaska and Oregon, where it's been approved but no stores have opened yet.
Nevada already has distributed many of its 66 marijuana dispensary licenses, but it's unclear how soon Las Vegas or other parts of the state will see shops open.
The process was complicated when Clark County gave preliminary clearance to eight applicants, and the state later gave preliminary clearance to eight others. The state deferred to the county's list, but the future of the state-approved entities is uncertain.
Nevada Medical Marijuana Association Executive Director Will Adler said the state's strict rules - based on Colorado's system - will stave off problems once dispensaries get off the ground and become a model for other states.
"We tried to write the law that would be the gold standard for the country," he said.
Nevada's regulations include "seed-to-sale" tracking to trace marijuana to the source - a measure aimed at preventing black market marijuana from seeping into the system, or thieves from taking pot out. The Department of Agriculture also is working to finalize a pesticide testing process that screens for 30 to 40 different chemicals, the first such system in the nation.
Silver State Relief General Manager Aron Swan said Sparks officials were supportive from the beginning.
One thing the city did right was to pick dispensary locations in industrial areas, he said.
"There are no homes around here, no churches or parks," Swan said. "We've had zero pushback."
Swan noted cardholders who come to Silver State Relief are not stereotypical stoners but normal people who use pot as medicine. He cited a young veteran with PSTD who told him marijuana is the only thing that gets him through the day.
"It gets me choked up, a little teary-eyed, and proud to be a part of this," he said.
http://www.hightimes.com/read/1st-legal-medical-pot-sold-nevada-15-years-after-approval
New York Announces Five Medical Marijuana Producers
By Drug Policy Alliance
July 31, 2015 5:13 PM
NEW YORK, NY — The New York State Department of Health (DOH) on Friday announced the five companies that have been awarded the coveted licenses to grow and dispense medical marijuana in New York.
The announcement came after a competitive bidding process through which forty-three industry groups contended for the five licenses.
The five companies awarded licences are PharmaCann LLC; Empire State Health Solutions LLC; Columbia Care NY LLC; Etain, LLC; and Bloomfield Industries Inc.
Each producer is restricted to opening only four dispensaries each, they will only be allowed to produce five strains or brands of medical marijuana, and all products must be in pill, oil or tincture form.
The price of the medicine will be set by the Commissioner of Health.
DOH has said that New York’s medical marijuana program will be fully operational by January 2016. Before the program can become operational, the state must also create a system for registering doctors and patients.
Since July 2014, advocates have been fighting for an emergency access program to get medicine to the critically ill sooner than the January 2016 deadline. But despite a year of advocacy and passing an emergency access bill in both the Senate and Assembly, to date, not one patient in New York has received medical marijuana.
The statement below is from Julie Netherland, PhD, who is a deputy state director at the Drug Policy Alliance and helps staff Compassionate Care NY, a grassroots coalition representing thousands of patients, families, and providers and dozens of organizations:
“The announcement of the five producers is an important milestone in the implementation of New York’s medical marijuana program, but the state still has a long way to go before medicine gets to the patients who so desperately need it, and our concerns with the program’s limitations still stand. We hope that the selected companies have the experience, integrity, and focus on patient welfare that New Yorkers deserve. In the coming weeks, we will be taking a closer look at the companies to learn what we can about them. And over the long term, we’ll be working to insure they are held to the highest standards of corporate integrity and patient care.
“The distribution of dispensaries around the state remains a major concern. Given the current proposed sites, there are huge areas of the state where patients will have to travel enormous distances to get medicine. This is especially problematic given that many medical marijuana patients are sick and disabled and low income.”
“We are looking forward to working with the selected producers to address some of the most serious issues with New York’s medical marijuana program, such as access for low income patients, geographical access across the state, access to whole plant medicine, the number of covered conditions, and creating a diverse and equitable industry.”
http://www.thedailychronic.net/2015/45692/new-york-announces-five-medical-marijuana-producers/
Congress’ Summer Fling With Marijuana
How Congress turned on the DEA and embraced weed.
By JAMES HIGDON
July 30, 2015
It’s not easy being the DEA these days. After an unprecedented losing streak on Capitol Hill, the once-untouchable Drug Enforcement Administration suffered last week what might be considered the ultimate indignity: A Senate panel, for the first time, voted in favor of legal, recreational marijuana.
Last Thursday, the Appropriations Committee voted 16-14 on an amendment to allow marijuana businesses access to federal banking services, a landmark shift that will help states like Colorado, where pot is legal, fully integrate marijuana into their economies. As significant as the vote was, it’s only the latest vote in a remarkable run of success marijuana advocates have had this year on Capitol Hill.
“The amendment was a necessary response to an absurd regulatory morass,” Montana Sen. Steve Daines, one of the three Republicans to support Thursday’s amendment, tells Politico, referring to the multifaceted and complex system of laws that have been enacted over the past four decades to prosecute a war on marijuana. It’s a war that began on or about May 26, 1971, when President Richard Nixon told his chief of staff Bob Haldeman, “I want a goddamn strong statement on marijuana ...I mean one on marijuana that just tears the ass out of them.”
But that war appears to be winding down—potentially quickly. The summer of 2015 could be viewed historically as the tipping point against Nixon’s war on pot, the time when the DEA, a federal drug-fighting agency created by Nixon in 1973, found itself in unfamiliar territory as a target of congressional scrutiny, budget cuts and scorn. In a conference call this week, the new acting DEA administrator repeatedly downplayed marijuana enforcement efforts, saying that while he’s not exactly telling agents not to pursue marijuana cases, it’s generally not something anyone focuses on these days: “Typically it’s heroin, opioids, meth and cocaine in roughly that order and marijuana tends to come in at the back of the pack.”
What a difference a year makes.
Once upon a time—in fact, just last year—then-DEA Administrator Michele Leonhart could dismiss President Barack Obama’s views on marijuana in public and get away with it because she had friends in Congress. After Obama said he believed marijuana was less dangerous than alcohol, Leonhart lambasted her boss as soft on drugs—and criticized the White House staff for playing in a softball league that included advocates from a drug reform group.
Then, she tried to bigfoot Sen. Mitch McConnell over his farm bill hemp provision; she slow-walked Sen. Chuck Grassley for three years over his questions about the DEA’s improper detention of a San Diego college student; and she was downright dismissive of an inspector general report that showed her agents had sex with prostitutes in Colombia who were paid for by the drug cartels the agents were supposed to be fighting. One by one, Leonhart eliminated all her friends in Congress, even as national attitudes about marijuana were shifting under the DEA’s feet.
The day after Leonhart’s appearance before the House Oversight and Government Reform Committee, when she admitted she didn’t know if the prostitutes used by DEA agents were underage, Chairman Jason Chaffetz (R-Utah) and ranking member Elijah Cummings (D-Md.) issued a joint statement expressing no confidence in Leonhart’s leadership. The next day, Leonhart retired, a move Chaffetz and Cummings deemed “appropriate.” That was April.
In May, the Senate made history by voting in favor of the first pro-marijuana measure ever offered in that chamber to allow the Veterans Administration to recommend medical marijuana to veterans. Then when June rolled around, it was time for the House to pass its appropriations bill for Commerce, Justice and Science. That’s when things got interesting. The DEA got its budget cut by $23 million, had its marijuana eradication unit’s budget slashed in half and its bulk data collections program shut down. Ouch.
In short, April was a bad month for the DEA; May was historically bad; but June was arguably the DEA’s worst month since Colorado went legal 18 months ago—a turn of events that was easy to miss with the news crammed with tragic shootings, Confederate flags, Obamacare, gay marriage, a papal encyclical and the Greece-Euro drama. July hasn’t been any different, with the legalization movement only gaining steam in both chambers of Congress.
The string of setbacks, cuts and handcuffs for the DEA potentially signals a new era for the once untouchable law enforcement agency—a sign that the national reconsideration of drug policy might engulf and fundamentally alter DEA’s mission.
“The DEA is no longer sacrosanct,” Rep. Steve Cohen (D-Tenn.) tells Politico.
The national tide is clearly not in the DEA’s favor. Since Colorado legalized recreational marijuana in January 2014, three additional states have followed suit with full legal weed; the District of Columbia’s fight to legalize continues; the number of medical marijuana states has grown to 23; 14 states have legalized nonpsychoactive CBD oil; and 13 states have legalized industrial hemp, spurring a rapidly expanding legal market for a plant long demonized by the DEA.
At the same time, a national debate about the high costs of sending millions of people—many of them young black and Hispanic men—to prison for nonviolent marijuana offenses has led to increasing questions about whether the zero-tolerance enforcement favored by DEA is the right way to proceed.
That marijuana reform is moving along in Congress at all is a sign of just how far—and fast—the landscape has shifted. Much of the recent uptick of reform voices are actually coming from Republicans, long tough-on-crime legislators who were stalwart opponents of marijuana. In a sign of just how far the sands have shifted, Sen. Lindsay Graham, a Republican candidate for president, tells Politico that he believes, “Medical marijuana holds promise.”
It’s no longer political suicide to be seen on Capitol Hill as backing drug reform. “There clearly is momentum, absolutely,” says Rep. Ted Lieu (D-Calif.), a former Air Force JAG officer who replaced Henry Waxman as the congressman from Beverly Hills.
“It’s the first time we’ve ever been able to show momentum in Congress,” Dan Riffle of the Marijuana Policy Project tells Politico.
The looming cuts has the Justice Department issuing dire warnings: “If enacted, the House budget would cause DEA to experience a significant shortfall in their FY16 budget that would severely inhibit their ability to carry out their mission of stopping the manufacture and distribution of illicit drugs,” says Patrick Rodenbush, a spokesman for DOJ.
But unlike such dire warnings in the past, when Congress could be assured of protecting funding for a law enforcement agency seen for decades as key to winning the War on Drugs, the shine has now clearly come off DEA—and that means the agency’s problems might just be beginning.
***
Before last year, marijuana reform had never made it very far in Washington. For decades, it appeared that DEA had no better friend than Congress, a body that blindly believed everything DEA told it about the dangers of weed. In 1998, the first time Congress voted on medical marijuana, it was an anti-medical marijuana House resolution co-sponsored by nine Republicans (including Rob Portman and Dennis Hastert), which passed 311-94.
The first pro-marijuana resolution to get a vote was 2003, a measure that prevents the federal government from interfering with state-legal medical marijuana programs. In 2014, after eight tries, that measure, known as Rohrabacher-Farr, finally passed by a vote of 219-189 as an amendment to a larger appropriations bill. Today, though, nearly all of the momentum now appears to be on the side of legalization. On June 3, 2015, Rohrabacher-Farr was renewed with a vote of 242-186. “That’s a significant uptick,” Riffle says.
?Read more: http://www.politico.com/magazine/story/2015/07/dea-marijuana-120674.html#ixzz3hVIA0hFg
2.5 million shares sold short today
http://otcshortreport.com/index.php?index=TRTC&action=view#.VbrixMtRHct
Terra Tech Corp Hawaiian Gold top ten sativa concentrate
2015 HIGH TIMES NorCal Medical Cannabis Cup: Top 10 Sativa Concentrates
By Sativa Von Teese · Wed Jul 29, 2015
We had lots of wonderful entries in the Sativa Concentrate Category at the 2015 HIGH TIMES NorCal Medical Cannabis Cup. Here's which ones made it into our Top 10.
http://www.hightimes.com/view/2015-high-times-norcal-medical-cannabis-cup-top-10-sativa-concentrates
9 - Hawaiian Gold by Terra Tech Corp
IVXX Reserve in top ten at Norcal Cannabis Cup
2015 HIGH TIMES NorCal Medical Cannabis Cup: Top 10 Hybrid Flowers
By Sativa Von Teese · Tue Jul 28, 2015
We had lots of gorgeous entries in the Hybrid Flower Category at the 2015 HIGH TIMES NorCal Medical Cannabis Cup.
Here's which ones made it into our Top 10.
http://www.hightimes.com/view/2015-high-times-norcal-medical-cannabis-cup-top-10-hybrid-flowers
10 - IVXX Reserve by Terra Tech Corp
Pot Probably Not as Bad as Heroin
New DEA Leader: Pot Probably Not as Bad as Heroin
'I'm not an expert,' he adds.
Chuck Rosenberg, pictured in 2007, says the Drug Enforcement Administration will still enforce federal marijuana laws, but that the drug is a relatively low priority
By Steven Nelson
July 28, 2015 | 3:20 p.m. EDT
The new leader of the Drug Enforcement Administration said Tuesday heroin probably is more dangerous than marijuana, diverging in tone from his embattled predecessor.
Acting Administrator Chuck Rosenberg, a former prosecutor whose stance on drug reform is somewhat of a mystery, also said his agents are not prioritizing marijuana enforcement -- though he's not ordered them off it.
The statements, made on a morning conference call, were far from an endorsement of marijuana, which four states allow for recreational use and many others do for medical purposes.
“If you want me to say that marijuana’s not dangerous, I’m not going to say that because I think it is,” Rosenberg said. “Do I think it’s as dangerous as heroin? Probably not. I’m not an expert.”
He added: “Let me say it this way: I’d rather be in a car accident going 30 miles an hour than 60 miles an hour, but I’d prefer not to be in a car accident at all.”
It’s a seemingly unremarkable answer and cautiously made. But it’s a significant break with his predecessor, Michele Leonhart, who said comparisons of pot to crack cocaine or heroin would be “subjective” and that it’s an “insidious” drug.
Dan Riffle, director of federal policies at the pro-legalization Marijuana Policy Project, says he appreciates Rosenberg’s candor.
“This is not a matter of opinion,” he says, “It's far less harmful than heroin and it's encouraging that the DEA is finally willing to recognize that.” Riffle notes thousands of overdose deaths each year result from opioid abuse compared to none from marijuana, which also is less likely to result in dependence.
"That's a great improvement over the previous administrator who was incapable of distinguishing heroin from marijuana," agrees Rep. Steve Cohen, D-Tenn., a consistent thorn in the side of Leonhart. "The real question that one day will be asked and correctly answered is: Is marijuana a more dangerous drug than alcohol?"
Leonhart resigned in May in the wake of a scandal involving agents participating in sex parties. Her colorful opposition to marijuana last year saw her chastise President Barack Obama for saying alcohol is more harmful than marijuana and unload on White House staffers playing softball matches against drug policy reformers.
Rosenberg's expected to be less vitriolic.
In his new role, Rosenberg said, he asked leaders of DEA branches across the country “to focus their efforts and the resources of the DEA on the most important cases in their jurisdictions, and by and large what they are telling me is that the most important cases in their jurisdictions are opioids and heroin.”
Rosenberg said, “I’ve also told them we are not going to shy away from doing marijuana cases where appropriate. We want to do the biggest and most important cases there are.”
But as a general matter, he said, “Typically it’s heroin, opioids, meth and cocaine in roughly that order and marijuana tends to come in at the back of the pack.”
A reporter for a Spanish-language news outlet attempted to extract more information from Rosenberg about how the agency will respond to the spread of state laws that allow marijuana possession for medical or recreational use in violation of federal law, under which almost all pot possession remains illegal.
“If it’s marijuana, that’s illegal under federal law and I’ve told them not to shy from that,” he said. “More to come on that.”
Rosenberg was on the call to promote a DEA prescription drug take-back program that aims to reduce the number of unused prescription opioids in households in a bid to cut down on their misuse and address a common gateway to heroin use. A study last year found states that allow medical marijuana for treatment of conditions like pain have fewer opioid overdose deaths.
http://www.usnews.com/news/articles/2015/07/28/new-dea-leader-pot-probably-not-as-bad-as-heroin
52 percent short sells today
http://otcshortreport.com/index.php?index=TRTC&action=view#.VbgfdstRHct
American Bulls gives TRTC the BUY signal
Market Outlook
Let’s jump on our white horses and go for a bullish ride. The bullish pattern that was previously identified is finally confirmed and a BUY signal is generated. Most probably, it is the right time to participate in bullish fervor. The market is telling you about a new profit. Do not miss this bullish opportunity.
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The Opportunity
The marijuana sector is poised for major growth, but investors and members of the supply chain have to act with care due to unsettled legal issues and unethical market players, not to mention high company valuations.
Marijuana-related companies may be surging in valuation, but they are also facing regulatory and compliance challenges. Aside from allegations of illegal activity, the complex legal situation is creating basic operational challenges for these companies. This includes the refusal of organizations from stock clearing houses to banks to support marijuana companies with business services.
Of course, the reluctance of some financial organizations to jump in creates great business opportunities, from financing of these companies to providing them with high-security technology and sophisticated services to protect their cash and products. Viridian Capital Advisors– the first pure-play company of its kind, as far as we can tell — was formed to provide market players and investors with sophisticated market intelligence, financial analysis and advisory services.
We see a shake-out coming – a separation of the legitimate from the shady; increasing clarity on the legal and regulatory situation, especially at the federal level; rationalization of valuations; and a growing awareness of the market’s long-term potential, which will attract more traditional capital sources and market participants.
Viridian Capital Advisors was built to fill the current financial and strategic void in the Cannabis Sector. Leveraging our team’s decades of high level operating and transactional experience on Wall Street, in a variety of emerging sectors, we provide flexible solutions that assist cannabis enterprises in realizing their full potential. We believe the marijuana sector is at the cusp of massive growth, with all the upside and associated risk that such a market development has always offered. Viridian Capital Advisors is a trusted advisor who can help identify both the upside and risk, and separate the good from the bad
http://viridianca.com/company/
Viridian Capital Advisors (“VCA”) was founded by a group of experienced Wall Street analysts and bankers to bring capital markets expertise, institutional research coverage and strategic direction to the emerging Cannabis Sector.
http://viridianca.com/team/
Viridian Capital Advisors in New York favors Terra Tech
“Investment companies have been acquiring a mixed bag of products and technology companies, while not being focused on creating a dominant company in any particular sector,” Michael Swartz, a senior analyst with Viridian Capital Advisors in New York, said.
Other hot sub-sectors for the remainder of 2015 include dispensaries and cultivation facilities, which returned 102 percent during the first quarter of 2015.
“At the end of the day, the root of the entire cannabis market starts with growing the product,” Swartz told HIGH TIMES. “In cultivation, we’re seeing a shift from the old world of growing in backyards and grow houses to the dawning of a new world of 200,000 square foot outdoor greenhouses with advanced technology in lighting and water systems.”
Favorites include national cultivation firm Terra Tech
Michael Swartz
Mr. Swartz leads all modeling and valuation work for the firm’s M&A and fund raising assignments. He served as co-portfolio manager for the Osprey Financial Group, where he analyzed publicly traded companies with market capitalizations from $50 million to $1 billion and prepared buy-side equity reports containing buy-recommendations and original valuations derived from fundamental & technical analysis. In addition, Mr. Swartz served as the fund’s Asian Economist, analyzing economic and geopolitical factors and assessing the Asia-Pacific region for attractive investment opportunities. Previously, Mr. Swartz worked as an Analyst at TBG Holdings, assisting clients with researching strategic options as it relates to market opportunities, competitive positioning, and allocation of resources. Mr. Swartz holds a B.B.A. in Finance and minor in Criminal Justice from the University of North Florida.
http://viridianca.com/company/
http://www.hightimes.com/read/high-growth-pot-stocks-and-sectors-watch-2nd-half-2015
Hawaii Overhauls Its Medical Marijuana Program
http://www.cannalawblog.com/hawaii-overhauls-its-medical-marijuana-program/
Though created in 2000, Hawaii’s cannabis regime has not provided for any regulated commercial marketplace for its approximately 13,000 patients. That all changed last week, after Hawaii Governor David Ige signed into law HB321, overhauling the state’s medical marijuana program and bringing it up to par with a growing number of medical cannabis states. Many aspects of Hawaii’s revamped medical marijuana program are quite similar to regulated medical cannabis markets in which our cannabis business lawyers already operate so we thought it would make sense to discuss the highlights of Hawaii’s overhauled program and a few of the interesting issues we see coming into play there.
Licensing structure: HB321 grants regulatory oversight to Hawaii’s Department of Health, which will issue eight business licenses distributed across four of its five counties: three for Honolulu, two for each Hawaii and Maui, and one for Kauai. Each licensee can operate two retail dispensing locations and two cultivation or “production” centers, all of which must operate only within their designated county. Production centers can grow no more than 3,000 plants at each location and cannot be located alongside retail dispensaries. The bill prohibits local opt-out and establishes general zoning guidelines, but gives localities discretion on how to grant zoning.
Hawaii will select dispensary licensees based on merit and will require, at minimum, a $5,000 application fee, $1.2 million in financial resources, 51% ownership by Hawaiian residents, and, if selected, a $75,000 license fee. Beyond these minimum qualifications, Hawaii will select licensees according to a familiar set of criteria, including their ability to operate a business, financial stability, security plans, and inventory controls, among other things.HB321 gives the Department of Health the authority to add additional or more specific selection criteria through administrative rule and contains a mechanism to add additional dispensary licenses in 2017, if necessary.
Cost: Because Hawaii is an island state, almost everything is more expensive. Real estate, electricity, water, and fuel are more expensive than most places on the mainland. Having to import production inputs will drive up licensees’ (particularly cultivators’) operating costs, which, in turn, will either cause prices to go up or (less likely) make businesses less profitable. This provides an opportunity, however, for mature operations to be competitive in the merit-based application process. Those that can demonstrate their ability to keep prices down and quality up, despite the increased production costs, could have a huge advantage.
Seed-to-sale: Interestingly, HB321 makes the state’s seed-to-sale software platform exempt from Hawaii’s procurement code, allowing regulators to bypass substantial bureaucratic hurdles that could threaten to stall their program’s implementation. The Department of Health still has to publicly solicit at least three proposals for the software, but regulators will have much more flexibility in how they can select and contract with their vendor.
Residency requirements: Hawaii is following a growing trend, particularly among Western states, of imposing residency restrictions on cannabis businesses and their investors. Hawaii requires licensees be at least 51% controlled by legal residents who have lived in the state for at least five years, the longest among states that impose residency restrictions. Oregon, for example, imposes a two-year residency requirement. Other states, like Illinois, gave preference to in-state applicants but have not established bright-line residency requirements.
Reciprocity: Hawaii will be the second state, after Nevada, to give reciprocity to out-of-state medical cannabis patients though out-of-state patients must first register with the Hawaii Department of Health before purchasing marijuana products. The details of this registration process will be determined by administrative rule, so it remains to be seen whether Hawaii will only register out-of-state patients with conditions that it recognizes. For example, a California patient who uses marijuana to treat anxiety or insomnia may not be able to purchase cannabis medicine in Hawaii.
Intra-state transport: HB321 expressly prohibits licensees from selling or transporting their products outside their designated county. But since Hawaii is an island state, the only way residents can travel between counties is by boat or airplane, which both fall squarely under federal jurisdiction. Oregon and Washington recently announced their policies to allow passengers to transport cannabis on in-state flights, however the FAA/TSA can override this policy at any time, if they so choose. This could create potential headaches for Hawaiian patients who wish to bring their medicine with them when traveling between islands.
Inter-state transport: Carrying marijuana across any state line violates federal law. Even though many people can and do fly with marijuana on domestic flights, Hawaii is the only state in which airline passengers are required to pass through an additional inspection by the U.S. Department of Agriculture. Plants, foods, and other agricultural products must be declared and inspected. Passengers trying to bring back marijuana from Hawaii to the mainland may be subject to additional penalties for lying on their USDA declarations, so it is especially advisable to leave all cannabis products behind.
Overall, Hawaii’s program shows enormous promise, and HB321 shows that its lawmakers are learning from other states’ models and have cherry-picked some of the best parts of each. We’ll be keeping a close eye on further developments from the Aloha State, so stay tuned.
White House Lifts Research Restrictions on Medical Marijuana
By Mike Adams · Mon Jun 22, 2015
Uncle Sam is finally offering researchers a more assessable approach to studying the medicinal benefits of marijuana. On Monday, the Obama Administration announced that it would no longer force the scientific community to endure some of the bureaucratic red tape that has prevented many of them from studying the potential health benefits of the herb for nearly 20 years.
In an official notice, which is expected to be published on Tuesday, the White House said that it is eliminating the necessity for researchers to undergo a separate Public Health Service Review—a process that has been required since 1999 as part of the approval requirements for marijuana research.
Reports indicate the decision was made to eliminate this obstacle because the current politics surrounding medical marijuana have overshadowed the necessity for these guidelines.
“The Obama Administration has actively supported scientific research on whether marijuana or its components can be safe and effective medicine,” Mario Zepeda, a spokesperson for the Office of National Drug Control Policy (ONDCP), told The Huffington Post. “Eliminating the Public Health Service review should help facilitate additional research to advance our understanding of both the adverse effects and potential therapeutic uses for marijuana or its components.”
Researchers have said for years that the process of seeking approval to study marijuana was a veritable pulling-of-the-teeth in desperate need of simplification. Even some of marijuana’s most infamous opposing forces have come forward recently to suggest that more needs to be done to better facilitate the exploration of this plant.
As we learned earlier this year in the case of Dr. Sue Sisley—who recently received federal approval to begin studying the effects of marijuana on post traumatic stress disorder—the procedures for obtaining a green light for an undertaking of this manner is a grueling affair that can take several years.
Not only have researchers been forced to undergo the Public Health Service review, but they also are at the mercy of the National Institute on Drug Abuse for a supply of their standards. However, drug policy experts suggest that with the introduction of highly publicized proposals, like the CARERS Act and several amendments aimed at crippling the powers of the DEA against medical marijuana states, the Obama Administration has been working to assemble progressive policies that they insist will lead to more exciting levels of reform in the near future.
“This announcement shows that the White House is ready to move away from the war on medical marijuana and enable the performance of legitimate and necessary research,” Bill Piper, Director of Drug Policy Alliance’s Office of National Affairs, said.
Although medical marijuana advocates are encouraged by the lifting of the Public Health Service Review, they claim more needs to be done, like eliminating NIDA’s monopoly on marijuana production, as well as downgrading the Schedule I classification of the cannabis plant under the Controlled Substances Act.
“Given what the president and surgeon general have already said publicly about marijuana's relative harms and medical uses, it's completely inappropriate for it to remain in a schedule that's supposed to be reserved for substances with a high potential for abuse and no therapeutic value,” said Tom Angell, with the Marijuana Majority.
http://www.hightimes.com/read/white-house-lifts-research-restrictions-medical-marijuana
ACDC Terra Tech Corp's 2015 HIGH TIMES NorCal Medical Cannabis Cup: CBD Concentrate Entries
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Hawaiian Gold Terra Tech Corp's 2015 HIGH TIMES NorCal Medical Cannabis Cup: Sativa Flower Entry
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Blüm Cadillac Cookies 2015 NorCal Medical Cannabis Cup: Hybrid Concentrate Entry
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Dope Mag California June 2015
http://issuu.com/dopemag/docs/dope_mag_california_june_2015_web/44
Buy Buy Buy
American Bulls TERRA TECH buy signal update
Our system’s recommendation today is to BUY. The BULLISH ENGULFING pattern finally received a confirmation because the prices crossed above the confirmation level which was at 0.1460, and our valid average buying price stands now at 0.1462.
https://www.americanbulls.com/SignalPage.aspx?lang=en&Ticker=TRTC
41 percent short sales for Monday
http://otcshortreport.com/index.php?index=TRTC&action=view#.VWzehrfbLct
Jury acquits medical marijuana patient of felony charges
By DAVID FERRARA
LAS VEGAS REVIEW-JOURNAL
Steven Ficano wept as the clerk read the verdict: not guilty on both counts.
He embraced his lawyers, who had tears in their eyes. A few members of the jury cried, too.
For almost three years Ficano has faced two felony counts, one of which could have sent him to prison for up to 10 years.
With red eyes, the 65-year-old Las Vegas man and his wife hugged and thanked each of the 12 Clark County jurors as they left the courtroom at the conclusion of his four-day trial.
The jurors took about an hour to acquit Ficano on charges of possession of marijuana and possession of marijuana with the intent to sell.
Prosecutors had argued that Ficano kept far more than he was legally allowed at his northwest valley residence and that he planned to sell the pot.
But Ficano’s lawyers, Dustin Marcello and Mike Miceli, brought in three of Ficano’s neighbors — a firefighter, a former police sergeant and a school district employee — who all said they did not believe he would sell the drug.
The defense noted that much has changed since charges were filed in October, 2012.
“We’re not used to treating it as a medicine,” Marcello said. “Well, those days are over.”
Since he was arrested, Nevada lawmakers have legalized pot dispensaries that would help prevent a situation like the one Ficano found himself in.
Euphoria Wellness, the state’s first medical marijuana store, is expected to open soon at 7780 S. Jones Blvd., less than 12 miles away from where jurors decided Ficano’s fate.
“Life is always about timing,” Marcello said. “If these police officers would have come three years later, he might have been able to go somewhere else to purchase it and not have to deal with this.”
In 2012 medical use of marijuana was allowed, but those licensed to use it were required to grow their own at home. So when detectives knocked on Ficano’s door he let them in. He had a medical marijuana license and a note from his doctor that said he could possess more than the legal limit of 2.5 ounces of marijuana and not more than 12 plants.
Defense lawyers argued that the doctor’s waiver did not clearly state how much pot Ficano could possess, and he was never given instructions on how to grow the plant and turn it into an edible product.
But in closing arguments, prosecutor Lindsey Moors lifted three cardboard boxes packed with marijuana that police confiscated from Ficano. She dropped each box, one-by-one, in front of the jury box.
Moors argued that several signs pointed to Ficano’s intent to sell pot. He had 68 plants, 24 pounds of finished marijuana, a digital scale, more than $51,000 in cash, 26 guns and “not a single pot baked-good located in his home.”
Moors said she was surprised by the verdict.
While authorities certainly will not give Ficano his pot back, it’s still unclear whether the state will return his guns and cash. There’s no law that says authorities must return property if someone is acquitted.
The guns were antique lever-action rifles, collectible pistol sets and historic muskets, Ficano’s lawyer said.
The money was cash Ficano had pulled out of his bank account during the recession. Some of the pot had been stored in jars so long that it had grown moldy. Most of the plants were either male or too immature to produce buds.
Ficano said his marijuana is used only for medicinal purposes, and he has not stopped growing pot since his arrest.
For 36 years, he ran a furniture repair business. He developed arthritis and has scoliosis. Ficano said he also used pot to alleviate pain from a recent car crash.
“It’s not about getting high,” he said after being acquitted. “It’s about treating my body.
Outside the courtroom, jurors said they focused on the doctor’s waiver, and said they didn’t think the document clearly defined how much pot Ficano could have at his home.
The waiver allowed him to possess 29 plants and 2 to 4 pounds of finished marijuana per three-month growing cycle. But Ficano said he only harvested marijuana once a year and assumed that he would be allowed to have up to 84 plants and 16 pounds of finished medicine.
Another juror, Donna Florence, said that after reaching the verdict she thought of her mother, who died of cancer about two years ago.
“If I could have gotten something for her that would have spared her that pain, I would have done anything,” she said. “And I think this guy was just in similar pain and trying to help himself.”
http://www.reviewjournal.com/news/pot-news/jury-acquits-medical-marijuana-patient-felony-charges