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PLENTY OF SUNSHINE 76 • 41 FORECAST, B10 | THURSDAY, DECEMBER 28, 2017 | santamariatimes.com A SPECIAL REPORT | DAY 2 Trump’s Fortune seekers, analysts have di ering opinions on county’s tweets cut against firing explanation

ERIC TUCKER POT OF GOLD Associated Press — When President Donald Trump fi red James Comey in May, he said he was acting on the recommen- dation of Justice Department leaders who had faulted the FBI director for releasing “deroga- tory information” about Hil- lary Clinton at the conclusion of the email server investigation months earlier. Yet with each tweet about the Clinton probe, Trump seems to be further undermining his ad- ministration’s stated rationale for a termination that’s now central to special counsel Robert Mueller’s Russia investigation. The disconnect between Trump’s attacks on Comey’s handling of the email investiga- tion and the criticism of Comey by his own Justice Department could muddy the explanation for exactly why Comey was fi red, and may complicate e orts by the president’s legal team to present a coherent narrative as Mueller and his prosecutors examine whether the dismissal could support obstruction of justice allegations. Trump has complained for months about the FBI’s decision not to pursue criminal charges against Clinton, his Demo- cratic opponent in the 2016 presidential election, for her use of a personal email server. He has suggested the criminal LEN WOOD, STAFF investigation was rigged in her David Ross, a business owner who is looking to move from the Sacramento area to Santa Barbara County to open up shop, tours empty favor, claiming in one October greenhouses on North A Street in Lompoc. tweet that Comey “totally pro- tected” her. He recently seized on the revelation of politically Real estate, banks and among obstacles facing cannabis business owners charged text messages from an FBI agent who worked on that WILLIS JACOBSON at the business and for sales. submit the jars as they were as probe to again deride the in- [email protected] was detained for “They took no re- evidence. They seized every- vestigation. And in a Saturday avid Ross had been four hours while gard of our articles thing on the property and they tweet that appeared to sug- running a medical o cers secured a of incorporation as cut down two small medical gar- gest Clinton should have been grow as warrant to search GREEN a mutual benefi cial dens that were in greenhouses.” prosecuted, Trump caustically part of a nonprofi t the premises. Once nonprofi t cooper- The incident illustrates a referred to “33,000 illegally de- collective for about a that warrant was RUSH ative, no regard to primary fear for many current leted emails.” Dyear when he received a phone served, he watched IN THE 805? seller’s permit, no operators in the marijuana in- call this month that rocked his as task force o - regard to business dustry, particularly those who Please see TWEETS, Page A2 operation to its core. cers rounded up all license and re- conduct business in a gray area Ross was at home when he was of his company’s unprocessed ceipts from we’ve that is technically legal in some called and told that police had plants, about 15 pounds of pro- done business with throughout respects, but could be consid- entered his operation, named cessed plants, and $15,000 in the year,” Ross said this month, ered illegal in others. As Cali- Todem, in Amador County for cash before arresting both Ross following his two-day stint in fornia moves toward a complete After record a compliance check after re- and his business partner on mis- jail. “They dumped all the one- overhaul of the soon-to-be fully ceiving calls about it being a demeanor charges of cultivation eighth ounce jars, which seemed public nuisance. Ross arrived and a felony charge of conspiracy to me like they didn’t want to Please see BANKING, Page A6 snow, bitter Inside cold ahead for County cashing in on cannabis . Cannabis operations: From northern US Leaders grapple with cultivation to retail sales THE ASSOCIATED PRESS taxes as analyst warns ERIE, Pa. — Freezing tem- . Snapshot: peratures and below-zero wind against high hopes The cannabis chills socked much of the north- market ern on Wednesday, LOGAN B. ANDERSON . More than even setting a record in a Min- [email protected] blowing nesota city so cold it’s called ’s new gold rush could smoke — the Icebox of the Nation, and be green, and government leaders imagination will stay put for days to come are grappling with how to cash in takes over as snow-hardened Erie digs out once they know if — and where from a record snowfall. — new cannabis ventures will be . What about Forecasters warned of hypo- allowed. ? thermia and frostbite from arc- Statewide, more than $1 billion PAGES A7-A8 tic air settling in over the central could be collected from pot sales U.S. and spreading east. and other activity within the next FRIDAY: The National Weather Service several years. JAE C. HONG, ASSOCIATED PRESS Mining the reported International Falls and In Santa Barbara County, tax An owner of the Higher Path medical marijuana , in Los Angeles, science of Hibbing, Minnesota, set record on could prepares his monthly tax payment, in this June 27 photo. He makes a marijuana: low temperatures on Wednesday generate between $4 million and monthly trip to Los Angeles City Hall to pay his tax payment in cash in Los Weed’s morning. International Falls, the $64 million in just one year, ac- Angeles. State and local taxes must be set aside and stored, sometimes for impact on self-proclaimed Icebox of the cording to an analysis conducted a month or more. health, Nation, plunged to 37 degrees by HdL Companies, a consulting environment below zero, breaking the old fi rm contracted by the Board of beit with strict restrictions within infrastructure to regulate and record of 32 below set in 1924. Supervisors. their boundaries, starting Jan. 1. control the industry. Ultimately, Hibbing bottomed out at 28 be- Locally, the cities of Santa - Others, including Santa Bar- supervisors must decide whether low, breaking the old record of 27 bara and Grover Beach will begin bara County, are continuing to below set in 1964. allowing the sale of cannabis, al- wrestle with creating a business Please see CANNABIS, Page A7 Please see COLD, Page A2

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00 1 $1.00 • Volume 136, Issue 215 • A Lee Enterprises Newspaper • Copyright 2017 Follow us online: facebook.com/santamariatimes twitter.com@santamariatimes instagram.com/santa_maria_times A6 | THURSDAY, DECEMBER 28, 2017 IN THE 805? SANTA MARIA TIMES Banking From A1 legal medical and recreational marijuana industries, Ross and many others who do business in the fi eld are hopeful that such sce- narios are a thing of the past. Still, they will have plenty of new rules and regulations to deal with. The process to jump-start a cannabis-based business fi gures to be fraught with many chal- lenges, according to many in and around the industry. However, the fi ght is worth it, according to many current and would-be busi- ness owners, as the industry steps out of the shadows and becomes fully legitimate. Location, location, location Lompoc resident Mark Ashamalla has his sights set on opening a business that will run “the whole gamut of the canna- bis industry” — everything from growing, extraction, distribution and a storefront dispensary. “There are a lot of hoops and hurdles to go over,” he said. One of the fi rst things discov- ered by Ashamalla, as well as oth- LEN WOOD PHOTOS, STAFF ers who have begun the process, is Unused greenhouses that were last operated by the fl ower industry on West Olive Avenue in Lompoc, refl ect sunlight. that securing real estate is often Some cannabis growers have suggested Lompoc’s available agricultural space as a location for their operations. easier said than done. “There are very few landlords GREEN continue to produce and sell mar- that are willing to deal with it and ijuana illegally because they don’t there are very few properties that RUSH want to pay taxes or get a business fall within the non-restricted ar- IN THE 805? license and that stu , and if they eas,” Ashamalla said. can undercut the legal market Indeed, Proposition 64 — the they’re gonna stay in business,” initiative that passed in Novem- Lompoc Police Chief Pat Walsh ber 2016 to legalize adult use of said. “So I wonder about the tech- marijuana — stipulates that busi- niques they will have to employ, nesses must operate at least 600 or that they have employed in the feet away from a school, day care past and will continue to employ, center or youth center, among to stay in that illegal business. It’s other guidelines. a cutthroat business in the black Richard Smith, a fellow Lompoc market and it will stay that way, resident who runs the CropLand so I worry about that, too.” Health delivery service, is also looking to open a storefront in Worth the effort Lompoc. Despite all the myriad obstacles, Smith said that he’s run into many of those who are looking to roadblocks with at least one local enter the legal cannabis market commercial real estate agent who say the work is worth it. he said either won’t negotiate with Along with the direct barriers him at all or is holding o on ne- to entry, some current and poten- gotiations until after ordinances tial business owners said they feel are adopted by the city and/or like they are also facing indirect county, which could potentially obstacles from many in their re- drive up the price of properties. spective communities who would “Unfortunately, this real estate rather not have them around. agent knew that if he waited to Ashamalla said he’s fi elded a lot lease these properties until after of questions from outsiders who the ordinance passed, he could are interested in opening up shop create bidding wars with all the in Lompoc. outsiders that came into town,” “I tell them, basically you have Smith said. to deal with a town that doesn’t “And that’s exactly what’s going CITY OF LOMPOC want you here,” he said. “They on now.” voted for it, but I think the oppo- Ashamalla said he’s experi- Lompoc city o cials produced this map to show areas where cannabis businesses could operate outside bu er sition is more outspoken.” enced that fi rsthand. zones shown. Proposition 64 — the initiative that passed in November 2016 to legalize adult use of marijuana — He said he’s hopeful that will He said he began searching stipulates that businesses must operate at least 600 feet away from a school, day care center or youth center. change with more e orts to edu- for potential properties last year cate the community. before the city of Lompoc even and went into banks and told Ashamalla also once ran a began seriously discussing regu- them what we do and they won’t restaurant in Lompoc and noted lations. After negotiating with a give (us) an account. You can open that some of the city processes broker, he said he reached a deal up an account online and try to do were notoriously di cult to deal for a property for $600,000. He it from a personal standpoint, but with. He said he’s seen improve- ended up declining the o er be- then certain activities show up, ment on that front in the years cause it looked like the property and you’ll lose that account if you since, however, and is confi dent would be in a banned zone. The show up as a cannabis business. that assistance will be available. next day, however, it was deter- So, we made a decision early on “Hopefully it won’t be as big mined to be in a safe area for sales, that we weren’t gonna deal with of a fi ght as it was before,” he so Ashamalla said he went to try to that headache of having once a said. “I’m hoping that the city reclaim the deal. He said he was month to fi nd another bank ac- assigns someone who is canna- told that the property was already count. It’s just a disaster.” bis-business friendly to help us sold — for $750,000. Smith said he doesn’t intend to get through the process and won’t “A hundred and fi fty thousand carry around big bags of cash to put up the hoops and hurdles, but dollars more in a day,” he said. “So pay taxes and other fees, like so rather help us get through the yeah, it’s almost created its own many other businesses have done hoops and hurdles.” hysteria because the maps have or are planning to do in the future. Smith, who grew up in Lompoc, been so restrictive and I think a lot “We’ve just decided that we’re said he sees his business as a way of people weren’t looking at them not gonna use the traditional to improve his hometown’s econ- or understanding them.” banking system because it’s not omy and provide jobs. Lompoc resident Mark Ashamalla hopes to open a business that will run there for us,” he said. “It’s not for “My goal is to give back to my “the whole gamut of the .” Show me the money the cannabis industry, so we have community,” he said. “I’m really Another aspect of the industry to be innovative and say, ‘If you focused on creating better paying that will continue to cause issues don’t want our business, we’ll go counts and keeping a lot of cash on cannabis business owners is that, jobs here in town, not fast food for business owners is the lack of somewhere else.’” hand is how we’ve been able to get after dealing with licensing fees (pay). We want our employees traditional banking. While some, such as the federal through it.” and taxes, among other costs, to like our business and care and Because marijuana is still clas- government, may view certain at- Although he admits that his they will still have to compete have a vested interest and see that sifi ed as Schedule 1 by the tempts to diversify cash as money current method can be perilous, with black market sellers who we care about the community and federal government, federally in- laundering, Smith said he isn’t he said it’s just as worrisome as his are able to turn profi ts much more they can do well here.” sured banks don’t typically o er concerned. alternatives. quickly. Ross, who is still scouting places loans or accounts to businesses “Anything you do with your “Believe me, instead of getting “It’s gonna be so expensive to move his operation, said he’s within the industry. cash in this business — let’s say cash from dispensaries that we that the black market will thrive also hopeful for what the future CoastHills Credit Union, one of you diversify and open up an- deliver to, I would much rather get because they don’t have to pay will bring to the industry. the largest community-based fi - other business because you’re a check that could go right to the taxes,” Smith said. “So, they can “We are trying to do everything nancial institutions on the Central really successful, well the federal bank,” he said. “That’s how I’ve have the same baseline prices as by the book and trying to become Coast, is among the overwhelm- government is gonna say you’re done all my other paychecks in my us, but they won’t have to pay a legitimate, legal business,” he ing number of banks that follow laundering the money no matter life, and that’s obviously a lot eas- taxes, so that will be the big chal- said, noting that he had been op- that policy. what,” he said. “It doesn’t matter ier than carrying around $5,000 lenge for us.” erating somewhat “in the shad- “We are a federally insured if you’re just moving it or trying or $10,000 in cash and worrying Ashamalla noted that the chal- o w s .” Credit Union, and cannabis is not to protect it.” about keeping track of all that lenge will be compounded because “It’s not impossible, but it’s legal at the federal level,” Coast- Ross, who had his accounts money. In your car doesn’t seem the black market sellers also won’t near impossible to do that at this Hills Credit Union President/ frozen following the raid on his safe; at your home doesn’t seem face the same quality testing and time,” he said. “It just sucks that CEO Je York said in a statement operation in Amador County, ac- safe; at your business doesn’t quality assurances that the legal it’s like that. When we were ar- to Lee Central Coast Newspa- knowledged that he’s used decep- seem safe — especially now, see- market will have to navigate. rested, we had close to a quarter pers. “In short, although we do tion in order to maintain accounts ing that the police can come and “Basically, if we send some- million dollars (worth) of prop- commercial lending, cannabis is at traditional banks. seize that money. thing to be tested and it’s found erty and products seized from us, a non-approved business as per “I’ve set up multiple bank ac- “I would defi nitely rather use to have something (problematic), and possibly in a year’s time or our policies.” counts and business accounts and a proper banking system and not we have to destroy all the product less than that, that wouldn’t ever While this has led many within just not been 100-percent honest have to worry about having so — literally everything that comes happen.” the industry to deal with cash about where the money is coming much cash on hand.” from that crop,” he said. “The Ross said he has a longtime only, others have found ways from,” he said. “I would love to be Ashamalla said his business black market (sellers), they don’t agriculture background and is around it. completely honest and do every- partner has discussed starting want to lose their crops, so there’s looking forward to putting that Smith, who estimated that his thing by the book, but there’s no a California-chartered private gonna be a lot of people trying to passion to use in a legit for-profi t business serves about 2,000 to banking institution that I’ve spo- credit union that would be able to get their products sold that are business. 3,000 patients within his col- ken to that has been able to pro- work with marijuana businesses. not up to code. That scares me “It’s not the most positive sys- lective, said he avoids traditional vide their banking services to my “So it’s not FDIC, but it is state- because it doesn’t create the best tem at this point,” he said, “but it banks in favor of the growing business or to me. backed, so there’s insurance that image. … It’s only gonna challenge defi nitely is changing, so I’ve got cryptocurrency market, which “We keep cash on hand, be- you can get for it,” he said. those of us who want to go legit.” my head up for the future.” uses digital assets like bitcoins. cause it’s hard to deposit (large That dynamic isn’t just trou- “Anybody in this industry who amounts of) cash into a bank Competing with bling for those within the indus- Willis Jacobson covers the city has a bank account is lying to their without drawing any red fl ags,” black market try, but also for police. of Lompoc for Lee Central Coast bank about what they do,” he said. he added. “So, multiple bank ac- “There are people, whether you Newspapers. Follow him on Twitter 00 “I’ve tried the honest approach counts and di erent business ac- Another major hurdle for legal make it legal or not, who are gonna @WJacobsonLR. 1 SANTA MARIA TIMES GREEN RUSH IN THE 805? THURSDAY, DECEMBER 28, 2017 | A7 Cannabis operations: From cultivation to retail sales MIKE HODGSON indoors or with mixed light. manufacturers can only sell to a of licensing types and information vation in small agriculture zones, [email protected] A Type 4 license for nurseries medical retailer which requires a go to bcc.ca.gov. although most want a 7-acre min- In addition to marijuana grows, will also allow operators to deliver permitted location. imum parcel size, and most sup- Santa Barbara County residents live plants. Testing labs are an indispensi- County support port cultivation in large ag zones can expect to see testing labs, Those who intend to operate ble part of the cannabis system, County supervisors are gener- with either 7-acre or 40-acre manufacturing, distribution, large plantation-like grows will because all cannabis from buds, ally supporting all types of can- minimum parcels. and delivery businesses, and re- have to wait until 2023 to obtain seeds and even stems to foods, lo- nabis operations as they move Wolf has not supported any tail store fronts sprout over the licenses. tions and medical products must through the regulation process, operations in small commercial coming years, but the operations The Department of Food and be tested for levels of THC — tet- although 1st District Supervisor zoning and mixed-use, which will be limited by the licensing Agriculture will require unique rahydrocannabinol, the psychoac- Das Williams has not favored al- includes residential uses, because process that’s being developed by identifi cation numbers to be at- tive ingredient in marijuana — and lowing delivery with retail oper- supervisors don’t support canna- the Board of Supervisors. tached to the base of each plant CBD — , the ingredi- ations. bis operations in any residential Of 12 state licensing catego- at a cultivation site to allow the ent with medical applications that “I really believe that for safety area. ries, the county is focusing fi rst agency to track plants as they doesn’t produce a “high.” reasons we should be having All have supported manufac- on grower licenses, which include move through the process from Testing labs will also check for storefront retail and not having turing in manufacturing zones up to four subcategories based on grower to consumer. any chemical contaminants and delivery services,” Williams said. and some commercial zones. the size of a grow, whether it’s in- microbiological impurities and “I’ve asked a lot of folks in the One type of operation the Board doors, outdoors or uses a mixed Those in manufacturing make sure the labels accurately re- industry and a lot of enforce- of Supervisors has not looked fa- source of light. Manufacturers will be divided fl ect the contents of the products. ment (people) about it, and what vorably upon is microbusiness, Licenses also will carry an “M” into two types, those that use In order to obtain a license, a lab I get time and time again is these which combines multiple func- designation for medical mari- nonvolatile or no solvents must be certifi ed by the Interna- delivery services are a lot more tions — cultivates less than 10,000 juana, or an “A” designation for to create their products, and those tional Standards Organization. vulnerable to being robbed and a square feet of plants and serves as adult-use marijuana. that us volatile solvents, which As far as distribution, licensed lot more di cult to regulate than its own distributor, manufacturer Grower licenses are broken can release fl ammable gas or va- distributors serve as the “middle a storefront dispensary. and retailer. down into categories ranging pors, in the production process. man” between each type of busi- “A storefront dispensary, you Microbusinesses might be op- from Type 1 to Type 4. They in- State regulations allow can- ness. Distributors will get the raw can require them to have cam- erated by an individual or a small clude the “specialty” grower Type nabis business operators to hold cannabis and refi ned products to eras, you can require them to have team as a “fully integrated enter- 1 license, with three subcategories more than one type of license — the testing labs, then move the security guards, you can even re- prise,” according to county sta . for grows up to 5,000 square feet referred to as vertical integration product on to the next step — raw quire … that possibly … their re- “I’m just opposed to the idea and one “cottage” license limited — with some limits. cannabis to a manufacturer or re- cords are open to because I think these guys are to 2,500 square feet; Type 2 li- No one may hold a cultiva- tailer, manufactured products to to use as part of a discretionary the hobby guys,” said 4th District censes include small-size grows tion, manufacturing, retailer or a retailer. permit requirement. We can’t ef- Supervisor Peter Adam. “Maybe up to 10,000 square feet; and Type distributor license along with a Distributors also will be re- fectively do that on delivery ser- they do some things well and 3 licenses cover medium-size testing lab license, which must sponsible for collecting the taxes vices. All they are is an app.” other things not so well, and I plantation-grows up to 1 acre be completely independent. on cannabis and forwarding them All but 2nd District Supervisor think those are the ones that are outdoors and 22,000 square feet Those licensed as medical to the state. For a complete listing Janet Wolf have supported culti- going to be the problems.” Snapshot: The cannabis market Commercial marijuana rules in California counties MIKE HODGSON [email protected] Cultivation, manufacturing, retail categories Here’s a snapshot look at the current cannabis market and what it’s expected to be once all the regulations and license processes are in place. All approved In California In Santa Barbara County 2 approved 13.5 MILLION 200 Total cannabis production is estimated at 13.5 million An August 2016 survey conducted by 1 approved pounds per year. the county indicated 200 cultivation licenses could be issued. All banned 1.6-2.5 MILLION Total is estimated at 1.6 million to 1,365 Pending 2.5 million pounds per year. A total of 1,365 current and Excess product is exported, possibly to other states. anticipated growers signed up on the county registry between April 17 and 200 June 30 this year. The entire statewide market could be supplied by just 200 medium-sized indoor grows. 3.7 MILLION Cannabis production could Monterey 14,277 potentially reach 3.7 million pounds County The state anticipates 14,277 cultivation licenses will be per year. issued. San Luis Obispo Kern  Based on the interest in County County 30-40 MILLION cultivation licenses, the Cannabis production could potentially rise to between county’s potential cannabis Santa Barbara LA 30 million and 40 million pounds per year. production could be more County County than twice the entire state Ventura $500/lb market. County Marijuana was selling for $1,500 to $2,000 a pound, but some growers are now having trouble selling it for $500 a SOURCE: Cannabusiness Law Inc pound. $50/lb State and local o cials and agriculture industry veterans believe the price for cannabis will eventually plummet to $50 per pound due to overproduction. Low market prices could lead to a shakeout in growers, with only the biggest, most heavily capitalized operations surviving. Consumers 9%: of the market will be medical marijuana users 65%: will be recreational users and medical marijuana users skirting the cost of doctor visits 26%: will be supplied by the black market, including people who grow their own or obtain it from friends.

commercial market. Cultivators county decision-makers will Cannabis California cannabis crop will be required to pay a cultiva- have to decide how they allocate From A1 13.5 million tion tax to either a distributor or the money. pounds } Total cannabis manufacturer, depending on the Supervisors are contemplat- o cials will follow the state’s production nature of the transaction. ing four options to tax cannabis lead, set their own rules and re- } Excess exported The state cultivation taxes in Santa Barbara County. strictions or decide to keep the to other states will be as follows: $9.25 per dry- The fi rst includes developing existing moratorium in place weight ounce, or $148 per pound, a gross receipt tax of 2 percent indefi nitely. All those decisions Total cannabis } of cannabis fl owers; and $2.75 per for nurseries and distributors; could a ect the county’s bottom 1.6-2.5 million dry-weight ounce, or $44 per 4-percent gross receipt tax on consumption pounds } 200 medium-sized line when it comes to cannabis tax grows could produce pound, of cannabis leaves. cultivators; and a 6-percent tax revenue. Cannabis fl owers contain on manufacturers and retailers. higher amounts of the mind-al- With this plan, the board could Supply vs. demand ket can possibly support,” said ter Adam will heed the warning. tering substance THC and can be cap any gross receipt tax at 8 per- Two years ago, the California Mark Lovelace, HdL Companies “There is a gold rush mental- used to create a variety of prod- cent. Department of Food and Agri- cannabis policy adviser. ity,” Adam said. “The stu that is ucts, while the leaves of the plant According to analysts, this culture conducted a survey of Since the adoption of Prop- sold in this state is going to drop have a lower amount of THC and option would create revenue potential cannabis cultivators in osition 64 in November 2016, precipitously in price. There have fewer uses. without causing undue burden Santa Barbara County. The study hundreds of people have begun is going to be a whole bunch of State leaders chose to levy on any of the di erent industry found about 200 people engaged to expand or into the legal these legal guys that go broke. taxes on cultivators based on types. The fi rst option would give in or planning to enter the local weed business, which analysts This is not going to work.” weight because it is more fair to control of changing the rates to industry. fear could fl ood the market, turn- the di erent types of cultivation voters and not the Board of Su- This year, Santa Barbara ing any potential marijuana boom Multiple taxation options — whether cannabis is grown us- pervisors. County leaders took the survey into a cannabis bust. While cities and counties con- ing natural or artifi cial lighting. The second option is to levy a a step further, requiring current As fees and taxes are levied at tinue to grapple with regulations, Growers who employ artifi cial 10-percent gross receipt tax for and future cannabis cultivators the state and local level, many in- new state cannabis taxes go into lights can have more harvest per all marijuana operators, taxing and manufacturers to register dustry watchers believe the num- e ect Jan. 1. The tax will be levied year than those who grow solely every type of operator the same their locations, inventory and ber of pot ventures will shrink. on growers, manufacturers, pro- outside way. future intentions. According to “With so many people seeking ducers and distributors in areas “If you are going to place a tax HdL Companies consultants that registry, the number is more to be involved with this, espe- where local municipalities have on cultivation, is it fair if you do believe this option may deter than 500. cially in the cultivation sector, it built their local business infra- the same sort of rate for someone cannabis ventures from coming Overall, those cultivators could is going to force prices to plum- structure. that relies entirely on sunlight as to Santa Barbara County, if the produce 3.7 million pounds of met,” Lovelace said. “Margins are The revenue generated by the you do to someone that relies on industry is sanctioned. cannabis a year, according to the going to have to be razor-thin. It state tax will go to pay for the artifi cial lighting? It is going to The third option is a variation California Department of Food is very likely that the people that implementation of the new can- hit the person who relies solely of the fi rst but allows county and Agriculture, with 13.5 million are going to succeed are going to nabis rules, fund economic de- on outdoor light more severely leaders to adjust the rates at their pounds produced statewide. have to have some sort of fi nanc- velopment, drug treatment and because they only get one har- discretion. Supply may exceed demand, ing that will allow them to lose prevention e orts, along with vest per year,” said Dan Klemann, The fi nal option is to leave it up however. money for a period of years until environmental and law enforce- deputy director for the county’s to voters. The same survey estimated their competition has thinned ment initiatives. Planning and Development De- Supervisors are exploring cre- that statewide, Californians out signifi cantly.” The fi rst is a 15-percent excise partment. ating a ballot measure for a special will consume about 2.5 million The consulting fi rm warned the tax that will be imposed upon Any decision about how much election in June to let county vot- pounds. Board of Supervisors not to think purchasers of cannabis and can- the county’s taxation structure ers decide how to tax marijuana in “There is far more interest of the cannabis industry as a cash nabis products. could levy will be above and be- Santa Barbara County. They are from people that want to come cow that will fi x its budget gaps. The second is a tax on the culti- yond what the state levies. Along set to discuss the item during their 00 1 into this industry than the mar- Fourth District Supervisor Pe- vation of cannabis that enters the with the decision of how to tax, next meeting on Jan. 9. A8 | Thursday, December 28, 2017 GREEN RUSH IN THE 805? Santa Maria Times More than blowing smoke — imagination takes over Powders, snacks, drinks to join ranks on retail shelves

MIKE HODGSON [email protected]‌ ‌Back in 1972 when Proposition 19, an effort to simply decriminal- ize marijuana, failed at the ballot box, few people were looking be- yond smokable forms of canna- bis — flowers, leaves, and . A few users probably consid- ered simple edibles like made from leaves and stems, the prover- bial brownies, cookies and cakes mixed with leaves and flowers run through a blender, or cheese sauce infused with hash oil or THC ex- tract. And there were those who would simply eat straight hashish, less worried about the taste than the end result. But when Californians approved CONTRIBUTED PHOTOS‌ the use of medical marijuana, Edible marijuana and marijuana buds are shown in an undated photo. imagination and innovation took over and more edible products ap- peared, like suckers and So who was Alice B. Toklas? mints. Today, cannabis-derived products are proliferating so fast Alice B. Toklas was a real per- was published in 1954. In addi- it’s hard to keep up with all the son — an American expatriate who tion to the list of ingredients and new ones being released by equally lived in France with her lover Ger- instructions for preparation, the proliferating companies. trude Stein and collected recipes recipe also suggested where cooks Companies have come up with from around the world — not just could find hashish and warned that clever names, some incorporat- the creation of popular culture two pieces should be the limit for ing bits of cannabis lore or “un- as someone who bakes marijua- consumption, and those who serve derground” terms for marijuana, na-laced brownies. them at social gatherings should be including 420 Gourmet, Aunty Part of that erroneous con- ready for guests experiencing hys- Em’s Edibles Co., Cannabliss, clusion may have come from the terical fits of laughter and a flood Cannamour, Cap’n Cosmic, Edi- similarity of her last name with the of wild thoughts. ble Complex, Full Flava Medibles, term “toke,” which means to puff a Although the recipe was for Grindz Co., Happy marijuana cigarette. fudge, Alice B. Toklas became as- Hemp Medibles, Creams, After Stein’s death, Toklas - sociated with brownies, and the Mad Hatter Coffee and Tea Co., lished her cookbook, which was term “Alice B. Toklas brownies” Madame Munchie, Mama Ganja as much a memoir of her life as a entered popular culture, forming Edible marijuana in package is shown in an undated photo, contributed by Edibles, Miss Mary Jane’s Edibles, guide to gourmet eating, that con- a focal point for the Peter Seller’s the U.S. Drug Enforcement Agency. Modern Martini Rx, MoonMan’s tained a recipe for hashish fudge, 1968 comedy film “I LoveY ou, Al- Mistress, Mountain High Suckers, which she called “the food of par- ice B. Toklas” and appearing in TV ity doobies, and those machines RJM’s Chronic Kitchen, Spliffin adise.” shows ranging from “Bewitched” may also see a resurgence in can- and Sweet Grass Kitchen. Because of that recipe, the cook- to “CHiPs.” nabis shops, analysts say. Some of the same or similar book created quite a stir when it While bongs have remained a products will be offered for med- staple of smoke shops over the ical marijuana users and recre- years, their popularity is expected ational users, but others will be Usually processed into an oil or seafood. to increase, along with that of aimed at one market or the other. and delivered in capsules, just One survey found edibles . (For those not familiar Cannabidiol — CBD — is a can- like many other over-the-counter ranked third in market share after with the term, the caterpillar Al- nabis compound proponents say nutritional supplements, CBD also cannabis flowers and concentrated Edible marijuana is shown in an ice encountered on her adventure has significant medical benefits can be found in topical creams, products in Oregon, Washington undated photo. in Wonderland was a but does not make people feel bottled — which looks and and , accounting for 12 .) “stoned” and allegedly can ac- tastes like any other bottled water percent of the $2.33 billion — yes, restaurant cash registers. Like the slowly vanishing to- tually counteract the psychoac- — and flavored . that’s billion — of the three states’ Items whipped up illicitly in bacco shops that offered pricey tivity of THC, which makes it an For recreational users looking combined cannabis market. home kitchens for decades — cigars in collectible wooden boxes attractive alternative for medical for the “high,” as well as medi- Many people have jokingly cookies, the brownies of 1960s and metal tubes with screw-on marijuana patients. cal marijuana users, the range of asked if cannabis ice cream will stoner fame and the hash oil fudge caps, many cannabis shops will Its acceptance as a therapeutic THC-infused products currently be available, but the fact is that that caused such a ruckus when also offer pricey pot rolled using agent among the general public or soon-to-be available rival the cannabis ice cream has been avail- Alice B. Toklas included it in her fancy methods — like the French- is growing due to being touted by variety of products found in the able to medical marijuana users for 1954 cookbook memoir — are now rolled joints popular at parties in celebrities ranging from Morgan average supermarket, and their several years. Ben & Jerry’s even commercially produced and pack- the early 1970s — and delivered Freeman to Lady Gaga. popularity is expected to increase considered making cannabis ice aged. in packaging ranging from classic CBD is said to have neuropro- as nonsmokers discover the effects cream in 2015. Smokable cannabis will be de- wooden boxes to funky cartons tectant abilities, shielding the of cannabis. Cannabis-infused products al- livered in bulk as well as prerolled covered with . body from damage due to strokes However, there are limits. Edible ready on the market range from cigarettes, which are expected to For those who don’t want the and trauma and treating such cannabis products can contain no potato chips, nuts, chocolate-cov- be popular with those new to mar- hassle of stopping by the cannabis neurodegenerative diseases as more than 100 milligrams of THC ered dried fruit and granola to ijuana use. It’s already available in shop or who might be embarrassed Parkinson’s and Alzheimer’s. It in each 10-serving package. Lo- water, coffee, tea, , but- special formulas for vaping. to be seen entering one, companies also holds promise for use in treat- tions, tinctures and creams may ter and peanut butter. Lagunitas Market analysts say legalized in the Bay Area are already offering ment-resistant forms of child- have no more than 2,000 milli- Brewing Co. recently introduced cannabis will probably revive the “curated sample boxes” through hood epilepsy. grams of THC for medicinal use SuperCritical Ale, a cannabis rolling papers market that faded clubs similar to those for gourmet Evidence from several studies or 1,000 milligrams for regular brewed with plant oil compounds with the ’60s, bringing back such produce and . shows it has anti-inflammatory adult use. for a strong cannabis taste but popular styles as mint- and straw- With monthly fees averaging and analgesic properties, making Edibles also cannot be made containing no THC. berry-flavored, oversized, bam- $150, club members can have a box it useful for treating back, neck, in the shape of humans, ani- Candy is also popular, including boo-based and the once-ubiqui- delivered with items specifically elbow, knee, shoulder and other mals, insects or fruit; associated gummy whatevers, old-fashioned tous American flag papers. selected to match their individual pains in addition to arthritis. with cartoons that would appeal gum drops, espresso chews, toffee Veteran marijuana users who al- tastes, including cannabis flowers, It also has the potential for treat- to children; can’t use the term or sea-salt caramels coated with ways had trouble rolling a decent edibles, oils and topical creams ing motivational disorders like “candy” in their names; and be dark or light chocolate and choc- joint often turned to rolling ma- along with “bonus” items like depression, anxiety and . mixed with , , olate mints like those offered at chines to turn out cigarette-qual- cannabis-inspired art and music. What about hemp? Low-THC variety used in industry could become a lucrative crop MIKE HODGSON cessed. [email protected]‌ But industrial hemp is legal to ‌Only one farmer is known to grow in more than 30 other coun- be growing hemp in Santa Bar- tries, and each year millions of bara County, and whether it will dollars worth is imported into the take off as a popular crop here or United States, mostly from Can- elsewhere in California remains ada and China, to fill a growing to be seen. demand for hemp products. The focus at the moment is on According to the Hemp Busi- medical marijuana and recre- ness Journal, industrial hemp is ational cannabis cultivation, but used in more than 50,000 prod- if plummeting prices shake out ucts — textiles, food items, build- a majority of those growers, as ing materials, bio-plastics, nu- many think they will, industrial traceuticals, nanomaterials and hemp could become a lucrative . crop for former cannabis grow- They range from sunglasses, ers and other California farmers. ski goggles, composites for au- For more than a century, hemp tomobile bodies, for has been an illegal crop in the building foundations, superca- United States, classified as a pacitors expected to one day re- CONTRIBUTED PHOTO‌ Schedule 1 controlled substance place rechargeable batteries and A company called Renew built this sports car using composite materials made of hemp. by the federal government, de- 3-D printing filaments to animal spite the fact it contains such a bedding, creams for skin care, low level of hemp powder and shelled departments. including its classification as a 2013, it didn’t become effective or THC — the active ingredient in hemp seeds rich in , anti- That was a year after the Cal- Schedule 1 controlled substance. until Jan. 1, 2017, as the result marijuana — that it can’t deliver oxidants, amino and fatty acids, ifornia Legislature approved That bill failed to pass, but in a of a provision in Proposition 64, the “high” cannabis users are according to the journal. Senate Bill 566, the California bipartisan effort it was reintro- the Adult Use of Marijuana Act looking for. In 2014, annual retail sales of Industrial Hemp Farming Act, duced in the House of Represen- approved by voters in November California is one of 24 states hemp products was estimated at which authorized the production tatives in July 2017 as HR 3530. 2016. that define industrial hemp as $620 million. of industrial hemp but failed to The most recent action on the That provision directed the distinct from other strains of The federal government soft- take effect. bill came in September, when it California Department of Food cannabis. The state’s Health ened its stance on industrial In an effort to relax hemp was referred to the House Sub- and Agriculture to appoint an and Safety Code limits indus- hemp with the 2014 federal farm even further, the Industrial Hemp committee on Crime, Terrorism, Industrial Hemp Advisory Board trial hemp to the strain Canna- bill, which gave farmers the right Farming Act was introduced in Homeland Security, and Investi- to help develop the registration bis sativa L, which may contain to grow industrial hemp if they the U.S. House of Representa- gations. process, fee structure and regu- no more than three-tenths of were in states with legislation tives and Senate in January 2015 Although California’s Indus- lations necessary to provide for 1 percent of THC in any part of allowing pilot programs for re- to remove all restrictions on the trial Hemp Farming Act had been commercial production of indus- 00 the plant before or after it’s pro- search through their agriculture cultivation of industrial hemp, approved and signed into law in trial hemp. 1