M a R I J U a N a Tested

WWW.MARIJUANAVENTURE.COM VOLUME 2 / ISSUE 4 M A R I J U A N A

THEVENTURE JOURNAL OF PROFESSIONAL CANNABIS GROWERS AND RETAILERS TESTED AT 41%! The most potent bud ever?

SPRING PLANTING Get your garden ready for the growing season

POT FROM THE GOVERNMENT North Bonneville makes marijuana history

APRIL 2015 $6.99 GROWING GREENER A look at the pros and cons of organic-style growing

A MESSAGE FROM THE PUBLISHER Magazine continues to expand readership, scope This issue features several interesting new ads, stories very month I believe all businesses should operate for a little on a level playing field, and those that do Emore than a so without paying their fair share of the year, we’ve published tax burden are simply operating in a way Marijuana Venture that takes advantage of those of us who as a strictly-busi- do. Call me old-fashioned if you like, ness, highly-focused but I really do believe that the American monthly magazine for system of capitalism is a good one, and PUBLISHER the rapidly-changing and exciting world that we all thrive when we all pay our fair GREG JAMES of the legal marijuana industry. share. [email protected] In that time, we’ve gone from being an On another note, you’ll see some in- eight-page, black-and-white newsletter teresting new advertisers this month that EDITOR that only covered Washington State to a expand the magazine beyond that of a GARRETT RUDOLPH 116-page glossy magazine that’s spread- traditional pot culture publication. We [email protected] ing all across the coun- have an ad for a win- SALES MANAGER ty. While the majority ery, one for a float tank I BELIEVE ALL LISA SMITH of our readers are lo- experience (which is cated in Washington, BUSINESSES very cool — I tried it), [email protected] Colorado and Ore- SHOULD OPERATE a company that sells STAFF WRITERS gon, we’ve steadily armored security ve- CHRIS BAYLEY been adding readers in hicles, and another for PATRICK WAGNER Alaska, New Mexico, ON A LEVEL a high-tech instrument Arizona, Montana and PLAYING FIELD... that growers, proces- CONTRIBUTORS California. sors or retailers can Joy Beckerman Matt Goldberg Michele Brooke Christen McCurdy This month we expand beyond the use to accurately test potency of their own Shawn DeNae Colette Thomas Rockies into the Midwest, and welcome marijuana. Andrew C. DeWeese Steve Walser Illinois and its state-regulated marijuana As I mentioned above, our focus is Calvin E. Eib Jana Weltzin businesses as monthly recipients of the business, and will stay that way. However, Steven P. Fuhr Jerry Whiting best publication in the industry. once in a while we see or hear of some- MARIJUANA VENTURE VOL. 2, ISSUE 4 Marijuana Venture (ISSN #2376-0710) is published I often get asked why we’re different thing that is newsworthy even if it’s not monthly by MJ Directions LLC. PO Box 1419, Renton, from the dozens of other marijuana/canna- strictly a business story. I think the story WA, 98057. Phone: (425)281-1348. Website: www.marijuanaventure.com. Copyright 2015 by Marijuana Venture. bis publications. I have a couple answers on the Buddy Boy Farm strain that tested All rights reserved. Reprinting, in whole or in part, is to that. First and foremost, we are not out- at 41% THC fits into that category. expressly forbidden without written permission from the publisher. spoken advocates of marijuana use. When I first about heard it, I said “no While we support the legalization of way.” ADVERTISING For advertising rates, call (425)281-1348 or email Greg@ cannabis, and feel its use by adults should However, when I talked to Steve Walser MarijuanaVenture.com. simply be an issue of freedom (“If one at Buddy Boy Farm, and then looked at SUBSCRIPTION SERVICES person can choose to have a glass of wine, the test results from the lab, I started to For subscription services, please call (425)281-1348, visit why can’t someone else have a toke of believe. At first glance, it seems like an www.marijuanaventure.com or email Editor@Marijua- naVenture.com. For change of address, please include the pot?”), we leave advocacy and stories re- unbelievable number — 41% THC! — old address and new address, along with an address label lated to consumption for others who are and maybe it is. But then again, it might from a recent issue, if possible. Please allow up to three weeks for address to be changed. If an address is not up- better informed than us on that subject. simply be something analogous to the dated when the magazine is mailed, we are not responsible for delivery of your magazine. If the Post Office alerts us Second, we are a business magazine phenomenon of 7- and 8-foot-tall humans. that your magazine is undeliverable, we will suspend our for the licensed, regulated professional While rare, we know it does occur from subscription until a correct address is received. business community. As such, we do not time to time. Marijuana Venture assumes no responsibility for any target the unregulated medical communi- claims or representations contained in the magazine or in any advertisement. All materials contained are for ed- ty or anyone else that falls into the gray ucational purposes and intended for the legal marijuana and black markets of untaxed, unregulat- GREG JAMES business where allowed by state law. Marijuana Venture PUBLISHER does not encourage the illegal use of any of the products ed cannabis. contained within.

2 | Marijuana Venture // April 2015

TABLE OF CONTENTS FEATURES 26 | Living the Dream Five people from different fields of the -in dustry talk about what’s on their mind 32 | North Bonneville Small town in Washington makes waves as first government-owned cannabis retailer 42 | Prepare for Spring Grow expert Chris Bayley provides reminders for the upcoming season 50 | Organic Style Cannabis can’t be organic, but it doesn’t mean it can’t be grown that way 58 | Greenhouse Shade Some regions may need to protect plants from getting too much sun and heat

60 | Cultivation Show National Cannabis Industry Association hosts symposium for growers 62 | Grow Technology Recent developments in the cannabis market spur excitment for the future 66 | Potency Examined Eastern Washington grower produces some mind-blowing test results 80 | Legal Pages Controversy brewing in Colorado and Oregon, plus information on filing taxes 90 | Clear the Air In some states, growers need to file permits with environmental agencies

GUEST COLUMNS 94 | Joy Beckerman 98 | Vicki Christopherson 101 | Jerry Whiting 102 | Colette Thomas Above: North Bonneville Mayor Don Stevens speaks during the cere- 104 | Shawn DeNae monial opening of The Cannabis Corner, the first government-owned marijuana retailer. See the full story on Page 32. OPINIONS About the cover: Buddy Boy Farm had a sample of God’s Gift test at 2 | Message from the Publisher more than 41% THC-A last fall. See story beginning on Page 66. 110 | Letter from the Editor

www.marijuanaventure.com | 5 CANNABIS CALENDAR

cup.com.

Events: At least nine industry April 20: The inaugural Portland Startup Summit brought Silicon Valley to the Rose City, but the encore will focus on local busi- shows slated for mid-April nesses, including the craft beer and cannabis April 14-15: From the organizers of the zine.com. industries. famed BIG Industry Show, Horticulture The Portland Startup Summit 2.0 will 360 is scheduled for its first show April 14- April 18-19: The Secret Cup takes a be from 11 a.m. to 7 p.m. at Holocene in 15 in Denver. Organizers plan to make it an different approach to the different cannabis Portland. annual event and claim it is the only trade competitions across the nation, putting its According to organizers, it is a conference show of its kind dedicated to growers. focus on the hash-maker. The event mixes that “constructs and deconstructs, the future “Far from being just a cannabis growing vendors and competition, with the next event of the Portland startup scene. Whether it’s event, it takes a 360 degree approach to hor- being set for April 18-19 in Santa Cruz, Cal- by focusing on the social good, excelling in ticulture, aimed at everyone from personal ifornia. unusual industries, or being bootstrapped by growers to commercial businesses to farm- Other stops on the Secret Cup schedule design, Portland startups do things different- ers,” the Horticulture 360 website says. (exact dates and locations to be determined) ly.” The event will feature a wide range of include Oregon, Northern California, Rhode Subjects will include the business of beer, products and vendors to situate Horticulture Island, Colorado, Las Vegas and Los Ange- public relations, starting a business without 360 as one of the leading business-to-business events in the nation. Hoods, lights, nutrients, soils, books and a vast array of other items will be available, as well as a special focus on supporting businesses to improve their hemp growing. The event is not open to the public. It is for business professionals only. More information: http://www.horticul- ture360.com.

April 17-19: You’ll have to be a busy traveler if you want to hit all the Hempcon shows scheduled for 2015. The next event of the series will be April 17-19 at the San Francisco Cow Palace. The National Cannabis Industry Association’s cultivation symposium featured dozens of speakers Subsequent Hempcon events will be May at the three-day event in March. For more on the symposium, see Page 60. 15-17 at Cashman Center in Las Vegas, May 29-31 and Aug. 21-23 at the Washington les. investors and the future of food. However, State Fairgrounds in Puyallup, Washington, More information: www.thesecretcup. those in the cannabis industry will likely be Oct. 9-11 at the Denver Merchandise Mart com. most interested in the section titled “Puff, and Nov. 6-8 at the National Orange Show Puff, Pivot: The Marijuana Revolution.” (NOS) in San Bernardino, California. April 18-20: Perhaps no cannabis-related Following Oregon’s vote to legalize rec- The shows will feature hundreds of exhib- event draws more interest than when High reational cannabis, marijuana is Portland’s itors, competitions and seminars. Times puts on its annual Cannabis Cups, newest growth industry, organizers said. More information: hempcon.com. headlined by the Denver event during 4/20 “This panel brings together advocates and weekend. In addition to the usual festivities, entrepreneurs to discuss why green is the April 19: DOPE Magazine will be host- competitions, vendors and entertainment, new gold.” ing its annual DOPE Cup on April 19 at the this year’s extravaganza will also include a More information: www.eventbrite.com. Chateau Event Center in Tukwila, Washing- performance by Snoop Dogg at a venue that ton. This will be the fourth annual cannabis has yet to be announced. April 20-22: The Marijuana Investor competition and vendor show put on by the This year’s event has been expanded to Summit 2015 takes a deeper look into the magazine. three days, following the record-setting 2014 legalized cannabis markets for people that According to organizers, this year’s event cup that drew more than 37,000 attendees to are in the marijuana business, are planning is expected to surpass the 700 attendees that the Denver Mart, which will be the site of the a new business, want to invest or operate a went to the 2014 version. Cannabis Cup once again in 2015. company that supports the industry. More information: www.dopemaga- More information: www.cannabis- >> CONTINUED ON PAGE 9

6 | Marijuana Venture // April 2015 We have over 20 i-502 surveillance systems approved and operating!

CANNABIS CALENDAR

<< CONTINUED FROM PAGE 6 cannabis reform. There will be seminars and a pre-con- More information: thecannabisindustry. Which shows have you attended? ference, half-day boot camp that will all org. With so many cannabis-related shows be taught by industry experts spanning the each month, it’s hard to know which ones realm of investors and successful entrepre- May 15-17: The Alaska Cannabis Clas- are worth attending, and which ones are neurs. sic is the first stop on a tour of three trade busts. We’re interested in hearing your The event will be at the Crown Plaza Ho- shows and cannabis competitions that will thoughts. Email letters to the editor or cal- tel in Denver. feature events in Tacoma, Washington and endar submissions to Editor@MarijuanaV- In addition to the educational aspect of Portland, Oregon later in the year. enture.com. the show, there will also be plenty of oppor- The three-day kick-off event at the De- tunities to network, with a full trade show, na’aina Center in Anchorage will include and Avis Bulbulyan, executive director of cocktail parties, special events and multiple vendors, product demonstrations, informa- Bulbulyan Consulting Group. chances to collaborate with other individuals tive seminars, hemp fashion show, live mu- More information: internationalcannabis- in the cannabis trade. sic and networking opportunities. association.com. The Marijuana Investor Summit could be The competition will feature locally-pro- where you find your next investor, or your duced cannabis products with an awards June 29-July 1: More than 2,000 attend- next investment opportunity. show to follow. ees are expected at the second National More information: www.marijuanainves- The Tacoma event will be July 18-19, Cannabis Business Summit and Expo torsummit.com. while the Portland event is set for Sept. 19- starting at the end of June. The event, hosted 20. by the National Cannabis Industry Associa- April 22: Christian Hageseth, the found- More information: nwcannabisclassic. tion, will be held at the Denver Convention er of Green Man Cannabis, will be speaking com. Center. about Big Weed: An Entrepreneur’s High- Topics will include infused products, cul- Stakes Adventures in the Budding Legal May 19-21: The Marijuana Business tivation management, policy and regulation, Marijuana Business at The Commonwealth Conference and Expo will hit Chicago emerging trends and more. Club in San Francisco. for a three-day, business-only event that is The show is expected to have more than Hageseth is “the face of the legal mari- expected to have more than 125 exhibitors 100 exhibitors, 70 speakers, 55 educational juana revolution,” according to event orga- and 70 expert speakers, including dispen- sessions and 10 hands-on workshops. nizers. The author of “Big Weed” is an en- sary owners, private equity leaders and top More information: thecannabisindustry. trepreneur and father of three who worked lawyers. With Illinois recently joining other org. in the white-collar professional world for states that have legalized medical marijua- 20 years before opening his first dispensa- na, there will also be a “marijuana business Aug. 15-16: Hempfest weekend in Seattle ry. Now, Green Man Cannabis is one of the crash course” — a workshop for new busi- just got a whole lot busier with the introduc- fastest-growing marijuana companies in the ness owners in the cannabis industry. tion of the Hempfest Business Show at the country. Hageseth will discuss how he got Consumers and the general public are not Seattle Center Exhibition Hall. into the business, the big corporate interests invited to Marijuana Business Conferences. This inaugural event is about creating an that are eager to do the same, and the full More information: mmjbusinessdaily. environment where Washington’s flourish- impact he believes legal marijuana will have com/conference. ing medical and recreational cannabis indus- on American life. tries can flourish and mature. More information: www.common- June 18-19: The International Cannabis It will run concurrently with Seattle wealthclub.org. Association will host the second Cannabis Hempfest, which will be taking place just World Congress and Business Exposition minutes away. Vendors will display the lat- April 28-30: The National Cannabis In- at the Javits Center in New York. est in cultivation equipment, packaging, dustry Association will host its Policy Sym- The event will bring entrepreneurs, busi- marketing, web design, insurance, nutrients posium and Member Lobby Days in Wash- ness professionals and lawmakers together and more. ington, D.C. with cannabis industry veterans at the largest More information: www.hempfest.org. “Without a strong political machine driv- marijuana-related business show on the East ing legal reforms across the country, there Coast. Organizers are planning to have more Dec. 4-5: Mark your calendar for The would be no cannabis industry,” the associ- than 150 exhibitors and 50 speakers at the Rush Is On, a business seminar, trade show ation says. two-day event, geared to help aspiring entre- and competition scheduled for Anchorage, This conference focuses on the latest ef- preneurs understand what it takes to succeed Alaska this winter. The event will be at the forts to reform state and federal marijua- in this rapidly growing industry. Dena’ina Convention Center. na laws. The event will be held alongside Speakers will include Ryan Hurley, a part- Seminar topics include cannabis cultiva- NCIA’s lobby days, and will feature both ner at Rose Law Group, Andy Joseph, pres- tion, tourism, “pot economics” and discus- panel discussions as well as an interactive ident of Apeks Supercritical, Dean Guske, a sions on testing and lab results. workshop teaching you how to lobby for CPA with more than 30 years of experience, More information: therushison.com.

www.marijuanaventure.com | 9 BUSINESS PROFILES

Jason Goff (right) of High End Market Place answers a customer’s questions during the store’s opening day.

Company: High End Market Place High End Market Place Location:Vancouver, Washington Employees: 10 Community involvement key for Vancouver retailer Top vendors: “We have eight produc- By Garrett Rudolph ers and we love all of them. The rea- VANCOUVER, Wash. — High End ally want to be a place here that people can son we’re working with each of them Market Place is a far cry different than go to showcase their work,” Hutchinson is that we like their products, we like most retail stores that are located in shop- said. “And I think marijuana goes hand-in- them, we like their system.” ping districts. For one thing, it looks a lot hand with a lot of those things.” Most popular products: Edibles are more like your neighbor’s house than a Nearby Portland, Oregon — where High popular; Agent Orange has been the place where you can legally buy marijuana. End Market Place draws about 30% of its highest selling strain so far; and $40 Being in a commercially-zoned house business — has always been known for its eighth-ounces have been “flying off gives the retail store warm, nostalgic vibrant culture, but just across the Colum- the shelves.” feeling that should be perfect for hosting bia River, Vancouver is enjoying a revital- However, despite its ambiance, High End a series of art- and cannabis-related com- ization of its art community. Market Place does face a little bit of a dif- munity events in the near future, co-owner Hutchinson and partner Gareth Kautz ferent challenge compared to being locat- Morgan Hutchinson said. were having a hard time finding a space ed in a more traditional shopping district, These upcoming Sunday Sessions will for their store, when they discovered the which might see a great deal more cars pass feature a variety demonstrations and per- neighborhood on Broadway Street. They by. But, there’s a surprising amount of foot formances by local musicians, painters, decided to go door to door down that street traffic because it’s in the middle of a neigh- poets, glass blowers, chefs and more, pro- looking for people that were either looking borhood, Hutchinson said. viding both education and entertainment to to sell, willing to lease out a section of a “A lot of people coming in are in the the store’s patrons. building, or were getting close to retiring. neighborhood,” Hutchinson said. “So there “We’re going to try to get as many peo- They found the latter in the woman who are a lot of people telling their neighbors ple in from the community, because we re- owned An Shen Wellness Clinic. and friends.”

10 | Marijuana Venture // April 2015

BUSINESS PROFILES

Company: Euflora Location:Two stores in Aurora, Colorado and one in Denver Employees: 50 Top vendors: O.Pen Vape, Incredibles The Euflora stores are known for their Most popular products: Edibles in clean, open atmosphere. Photo by Adam Larkey Photography. Denver and flower in Aurora

Will your business be next? Interested in having your business Euflora profiled in Marijuana Venture? Each Colorado retail chain draws comparisons to tech stores month, magazine staff will feature By Patrick Wagner different growers, retailers and specialty businesses in a short profile DENVER — Euflora has often been her to invest in the cannabis industry. section. For more information, or to called the Apple Store of cannabis because “It was actually my intention never to pitch a company to be featured, send of its open atmosphere, tech-driven retail do this full time. I was planning to keep an email to Editor@ and modern allure. The chain of retail lo- working in the building industry and do MarijuanaVenture.com. cations now includes two storefronts in this as a part-time gig, but then it turned Aurora, Colorado and one inside Denver’s into more than full time,” she said. fill the room while staff roam the floor 16th Street Mall. After deciding to venture into the new looking to answer questions. Customers Euflora co-owner Jamie Perino nev- industry, Perino made headlines for being can walk into the airy, 6,000-square-foot er set out to become the first retailer to the first retailer to open her doors to the Denver location and wander from table to break into the swanky downtown tourist masses of foot traffic that flow through table looking, smelling and reading about market, but her investment inadvertently Denver’s city center — a feat she attri- the products without worrying about the lead to her becoming one of the most pro- butes to sheer perseverance. But those next person in line. lific marijuana merchants in the state. For headlines changed once the doors opened “It set us apart, especially for the tour- Perino, the marijuana business was just a to show that Euflora wasn’t the typical, ist industry,” Perino said. “A lot of times side investment while the housing market single file, wait-and-pay retailer that had you get people who are unfamiliar with the recovered from its 2007 crash. been opening all over the city. products and they’re nervous or scared and “I spent a lot of time spinning my wheels The Apple Store comparison is immedi- when they come in through our doors and in the building industry after the market ately apt when looking inside any of the it’s bright and it’s airy and there’s music crash in 2007,” Perino explained. It was a Euflora locations; clean tabletops adorned playing, you feel more like you’re going Perino’s business partner who convinced with glowing tablets and jars of cannabis shopping than going to buy marijuana.”

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A look at one of Fairwinds’ commercial kitchens and several of its most popular products (inset).

Company: Fairwinds Manufacturing Fairwinds Manufacturing Location:Vancouver, Washington Employees: 10 Focus on technology leads to creative line of products Size: Indoor Tier 2 By Garrett Rudolph kitchens to good use, as well as multiple VANCOUVER, Wash. — Not only does for its vape cartridges, coconut oil-based high-volume extraction machines. Other Fairwinds Manufacturing create some of tinctures and cannabis-infused coffees that features include multiple isolated, sealed the most unique cannabis-related products come in either pod form or individual bags grow rooms built to ISO 7 clean room on the market, but its approach to utilizing of ground joe. But those that are interested standards, zero VOC paint on all surfaces technology and cutting-edge equipment in the production aspect of the industry are and extensive HPEA and carbon filtration also sets it apart from other companies. probably more intrigued by the Tier 2 pro- systems. Fairwinds owner James Hull said he ducer/processor’s facility. “Typically as technology increases, so jumped at the opportunity to build a busi- It features computer monitored and con- does quality, repeatability, consistency ness that tied everything he’s learned trolled systems throughout the building. and efficiency,” Hull said of his approach. through a lifetime of working with plants The electrical system designed in-house al- “This will become a very competitive mar- and technology. By trade, he’s a mechan- lows for control of the entire facility either ket and the ability to produce the high- ical engineer, but his upbringing and fam- locally or remotely through a PC, tablet or est-quality product at the lowest price will ily background helped him become a self- cell phone. That includes the lights, nutri- be imperative to survival,” he said. taught horticulturist. ent delivery system, CO2 supplementation, Hull has taken a similar approach with “The idea that I could design and build heating and cooling, dehumidification sys- Fairwinds’ 10 employees, bringing in peo- a legal cannabis cultivation and processing tem, water treatment and air purification. ple with unique skill sets to handle the facility with state of the art and unrivaled It’s also set up to send alarm notifications growing, extractions and product develop- technology blew my mind and really got via text messages anytime something goes ment. Among his staff are employees with my ‘Type-A’ blood pumping,” Hull said. wrong. degrees in horticulture, botany, bio-chem- Consumers might recognize Fairwinds Fairwinds puts two certified commercial istry, chemistry and micro-biology.

14 | Marijuana Venture // April 2015 Building a Grow?

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Dirt M.D. mercial-scale custom- ple-focused promotions, After 30 years of serving markets in ers.” the product has been Southeast Asia, Ocean Agro has expand- Dirt M.D.’s extraction able to generate a solid ed to the United States to introduce Dirt process creates ammo- following in California, M.D. to the U.S. farming community. Dirt nium humate, which he said. Dirt M.D. is sold M.D. is a formulated humic product de- is more reactive than for use with a wide vari- signed to improve plant health and yield similar products on the ety of agricultural crops by increasing nutrient uptake and effi- market and lets consum- including strawberries, ciency. ers do more with less, grapes, onions, rice and It is marketed and distributed by Ocean Parikh said. Additionally, alfalfa. Agro, which has an office in Daly City, Cal- it includes micronutrient Dirt M.D. does not use ifornia, with warehouse centers located complexes, stabilizers for any animal-based ingre- to serve growers across the country. optimizing performance dients or heavy metal “What’s really great about our prod- in drip and recirculating contaminants; even soil uct in the marijuana market is that we systems, and surfactants bacteria can grow in it have been able to validate it in more es- for improving foliar ap- organically. Additionally, tablished, lower margin agricultural pro- plications. Dirt M.D. is it includes natural plant duction systems that are highly cost sen- highly flexible. It can be sugars to feed the soil sitive,” Director of Operations Kaushal applied as a soil drench, life. Parikh said. “Operating at larger scales in foliar sprays, drip fertiga- Dirt M.D. has been designed to Through its extensive conventional agriculture has allowed us tion, hydroponic feeding improve plant health and yield. It has manufacturing capaci- to scale up to delivering large-scale pack- and with compost teas. previously been used for growing a ty in India, Dirt M.D. is wide variety of plants, including aging at pricing that works for even the It contains both humic able to service any size strawberries and grapes. lowest value crop. Ultimately, we see a and fulvic compounds customer while passing trend toward larger grows that have fo- sourced from oxidized lignite. along the advantages of scale and labor cused on managing costs, and Dirt M.D. The proof of the product is in organic saving through Ocean Agro. is well-positioned to service these com- sales growth, Parikh said. Through sam- More information: DirtMD.com.

16 | Marijuana Venture // April 2015 PRODUCT SPOTLIGHT

Grasshopper Extractor dried plant material in as little as The Grasshopper Extractor is 15 minutes with yields of up to helping to change the cannabis 25%. concentrate market by producing The Grasshopper’s extraction kief economically and fast. chamber uses 149-micron screens, One advantage of the Grasshop- with the option to customize per is that nothing is wasted from by adding extra sets of screens the plant, resulting in all-natural, to keep the production moving chemical-free kief. The extractor smooth and quickly. uses a 400-watt, 1/3-horsepow- Some cannabis entrepreneurs er motor and dry ice to churn out may choose to use the optional concentrates that can be used for a 100- and 74-micron screens to cre- variety of products. ate top-notch extracts. This gives producer/processors The machine is designed to be the option of using kief in their long-lasting and easy to use, with extraction machines rather than a series of rubber straps that make straight plant material. attaching screens easy and effort- By using kief, processors are less. The Grasshopper is also easy starting with a higher concentra- to clean — no solvents, special tion of trichomes to ultimately cleaners or lubricants are required. produce a cleaner and more potent It was developed to be environ- product. Kief can also be mixed in mentally friendly, as well. edibles without the time it takes to It is manufactured in Southern make butter. Oregon. Business partners Stacy Page and Eric Sfragidas display Grasshopper claims its extractor More information: www.grass- their Grasshopper Extractors to cannabis industry professionals at a recent trade show. can fully process up to a pound of hopperextractor.com.

www.marijuanaventure.com | 17 PRODUCT SPOTLIGHT

TraceWeed After a successful beta period with multiple producer/processor operations around Washington, Seattle-based Daunt- less Software has officially launched its TraceWeed service for I-502 businesses. TraceWeed gives producers and processors a new option to fulfill seed-to- sale traceability requirements, in addi- stickers are used to mark locations within ments to the product’s functionality, and tion to a host of extra features including the grow operations. Each PVC plant tag the company will continue to adapt Trace- detailed reporting, clone management, can be reused up to 10,000 times. Weed to its customers’ needs, Musser plant tracking and harvest functions. The PVC tags used for plants are im- said. Customers who use the TraceWeed “We’ve taken a lot of the time and pervious to grow-room or outdoor condi- software will automatically get updates headache out of traceability while keep- tions; all-weather stickers can be printed as they are rolled out, at no additional ing our pricing affordable,” Dauntless CEO with strain details and other pertinent charge. Clark Musser said. information using an optional portable “The sky is the limit around what we TraceWeed tracks plants, inventory, Bluetooth printer. TraceWeed does not want to offer for future versions of Trace- and storage locations using a combi- require proprietary hardware. Weed,” Musser said. “Our key goal is to nation of desktops and smartphones “We love how TraceWeed is mobile so help make it simple to run an I-502 busi- equipped with Dauntless’ patent-pend- you don’t always have to go to your com- ness in order to allow our partners to ing TapNTrace technology. Customers tag puter to get things entered,” said Susan focus on creating and selling great prod- their plants with PVC cards encoded with Strickland, co-owner of Happy Wayz Ed- ucts. a near-field communication (NFC) chip, ibles in Spokane, Washington. Strickland Dauntless plans to expand into other the same technology that is behind many was one of TraceWeed’s beta customers. states with legal recreational or medical of the cutting-edge mobile payment sys- Dauntless used feedback from Trace- marijuana markets, Musser said. tems, such as Apple Pay. Similar tags and Weed’s beta customers to make improve- More information: traceweed.com.

G8 LED lessons and video tutorials to help Since being developed by a growers better understand the prod- group of electrical engineers ucts, avoid simple missteps and get turned indoor growers in 2008, the best return on their investments. G8 LED has been a mainstay of While the biggest advantage indoor cultivation, thanks in part of using LED lights is the notably to its consistent attention to cus- smaller carbon footprint, compared tomer feedback. to high-intensity discharge bulbs, The company said G8 LED has growers will need to make some ad- been able to focus on redesigning justments in their techniques, the and innovating LED technology company said. One of the biggest based on customer feedback, al- mistakes people make with LEDs is lowing it to bypass the early hur- overwatering, the company said. dles some LED grow lights have Since the LEDs have a smaller heat faced. G8 LED’s philosophy is that output, there is less evaporation and if something does not work well a less-frequent watering schedule for the customer, it will not work should be followed, the company well for the long-term success of said. the company either. The G8 LED 900-watt, full-spectrum model. G8 LED recently received a Signif- The LED panels come in six dif- icant Technological Achievements ferent variations starting with the pany was founded, G8 LED partnered in Secretive Horticulture Award 240-watt, full spectrum model for veg with online retailer Dormgrow.com to (STASH) from High Times. The iconic cul- and flower and ranging up to the 900- offer products direct to customers. The ture magazine awarded G8 LED as one watt, full-spectrum model, also for veg partnership has allowed G8 LED to focus of the best light manufacturers in the and flower. Other products include 450- its efforts on manufacturing and design, industry due to its design and growing and 600-watt models and the 90-watt, while the website manages the retail and capability. all-red flowering boost. wholesale arenas, the company said. The More information: www.dormgrow. Soon after the Los Angeles-based com- website also hosts a variety of guides, com.

18 | Marijuana Venture // April 2015 GENTLE

processes any strain without damage to your product

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uses minimal power and is quiet enough to run without ear protection PRODUCT SPOTLIGHT

Aroma Canna-Pods & E-Pods in diameter and 2 inches tall. The ers a variety of other storage and display Will Smith has been creating plastic All of Bud Bar Displays’ products are products. display cases and retail fixtures for more made from certified food grade materi- More information: www.budbardis- than three decades. The most recent als. plays.com product from Smith’s Bud Bar Displays While the Canna-Pod is a standalone could represent the future of retail can- sniff jar, the E-Pod has a built-in body nabis. that incorporates a sign holder that can The Aroma Canna-Pod and Aroma be used to display each product’s test E-Pod are some of the highest-quality results, information about the producer sniff jars on the market, specifically de- and more. signed for compliance with Washington’s In addition to the E-Pods and Can- Initiative 502. Both styles of display pods na-Pods, Bud Bar Displays manufactur- allow potential customers to examine and smell buds so they can feel confident in the product they’re purchasing. They feature aroma holes with reusable silicone plugs that come in a variety of col- ors to make it easier to identify different strains and categories. The top of the pods also feature built- in magnifying glasses, so shoppers can get an up-close look at all those beautiful flowers and tempting trichomes. Both pods can display up to a half- ounce of buds. They measure 3.5 inches

Above: Bud Bar Displays’ Aroma E-Pod. At far left: The Canna-Pod.

CoolJarz 3301 CRSi Earthwise Packaging has recently released its latest product for storing cannabis extracts, the CoolJarz 3301 CRSi. These small extract jars are ideal for packaging less than two grams of any sticky, cannabis extract product. They feature hard outer bodies with soft, high-temperature silicone linings inside. Labels can be applied to any of the surfaces on the outside of the jar, and they come at a price of less than 50 cents apiece. They are all child-resistant and certified to ASTM D3475 standards. The inner jar will not fall out of the hard, outer container. The jars features a truly airtight, silicone-lined, hinged inner cap and a threaded outer cap. It’s ideal for hygroscopic, moisture-absorbing shatter products. The outer jar is made from 100% pure polypropylene, BPA-free, FDA-certified plastic. The jars are all manufactured at the Earthwise Packaging fac- The CoolJarz 3301 CRSi tory, located in Irvine, California. More information: 714-602-2169.

20 | Marijuana Venture // April 2015

PRODUCT SPOTLIGHT

Gnat Nix survival. The dry and rough surface of Growstone has recently expanded its the top dressing creates inhospitable product line to include a chemical-free conditions that negatively affect surviv- top dressing to control fungus gnat in- al rates for fungus gnat eggs. It also re- festations. duces the appeal for females to lay their Growstone’s Gnat Nix is made from eggs on the surface. When growing con- 100% recycled glass that cre- ditions promote fungus gnat ates a barrier against pesky population growth, applying gnats in several ways. Gnat Nix as a top dressing can First, Gnat Nix creates a prevent future problems – as physical barrier that limits the fewer eggs laid by adults larvae mobility. The top dress- females have a significantly ing limits the ability of larvae lower chance of survival. Gnat to crawl up on the surface, Nix has been quickly adopted pupate and emerge as adults in both gardening and profes- that would continue to re- sional markets. produce. Using Gnat Nix right Gnat nix is non-toxic and after plants are transplanted into -per chemical-free. It is also effective in dry manent growing containers will signifi- or moist conditions and can be used in- cantly reduce larvae survival chances. doors or outdoors. It’s a way to reduce Trapped in Gnat Nix, larvae end up dying plant damage with one single applica- before they become adults. tion without using pesticides. Growstone Second, the dry and inhospitable con- More information: www.growstone. Gnat Nix being used ditions created by Gnat Nix limit egg com. as a top dressing.

Tetratrak But Tetratrak president Brian Yauger plans are in place to expand the system A new website is making it easier for said he has plans to add significantly to include Oregon and Alaska once they those in Washington’s regulated canna- more content to the site within the next get their programs implemented. bis industry to keep tabs on the compe- 90-180 days. “Many of the recreational marijuana tition and trends in the marketplace. The “Right now, our website is a skeleton,” companies are looking for a quick and launch of tetratrak.com gives people an Yauger said. “That’s our starting point.” easy way to access information about easy and convenient way to collect thou- Yauger wants to add details like yield, the industry,” Yauger said. “Tetratrak. sands of pages of business information. how fast products sell, price comparisons com equips companies with the most de- Want to know what producer/proces- based on potency and strain information. finitive data, insights and perspectives to sor brought in the most sales revenue for “That data is out there, so it’s only a make tactical and strategic business de- the month of March? What price are re- matter of time,” he said. cisions.” tailers paying wholesale? The site is designed to provide business Yauger said he wants to keep the Want to know who the top 10 retailers information to I-502 businesses, venture price point fairly low, starting at $39 per are in the state? Or the average cost per capitalists, vendors and the media. Cus- month, to avoid pricing out smaller com- gram at retailers in a particular county? tomers of the subscription-based service panies. All this information and more is avail- can quickly see how each company in the “We understand that everybody in this able through Tetratrak. The site includes state ranks in comparison to other busi- business, from the top-selling produc- breakdowns of all licensed producers, nesses, as well as monthly increases or er to the guy who just came online, is a processors and retailers based on pric- declines in sales. start-up,” he said. ing, revenue, regional information and Yauger, who teamed up with attorney More information: www.tetratrak. violation reports. Bryan Guy to develop the company, said com.

22 | Marijuana Venture // April 2015

PRODUCT SPOTLIGHT

SRI INSTRUMENTS SRI manufactures several gas chromatograph. The heat ensures that all the Laboratory testing can be an import- matographs that can analyze cannabis cannabinoids dissolve in the alcohol. ant facet for growers and processors to samples and produce potency results in After about 20 minutes, a small better understand the plants they are as little as 30 minutes. These machines amount of the alcohol extract is injected growing and the different techniques are similar to the equipment used by the into the machine with a syringe. After and methods they are trying. DEA and other state and federal labora- about 10 minutes, the results appear on For businesses that are churning out tories to measure cannabis potency, ter- the screen of a laptop, tablet or desktop commercial quantities of marijuana on pene and cannabinoid profiles and even computer that’s connected to the gas a regular basis, it might not be feasible residual solvents in concentrates. chromatograph with a USB cable. or cost effective to send samples to labs After the initial investment of about The machine is also small enough to be in the middle of a grow cycle or to test $12,000, each test costs about 15 cents, portable. It can sit easily on a counter or more product per harvest than the state and the process is relatively simple, re- the tailgate of a truck to be used indoors requires. quiring only a few hours of training. or out. SRI Instruments, a company based The test requires one-tenth of a gram In most states, SRI gas chromato- in California, has developed a possible of cannabis flower or concentrate to be graphs cannot be used as a substitute solution for those in the cannabis indus- measured out and placed in a small bot- for state-mandated laboratory testing, try that need to keep a close eye on test tle. The bottle is then filled with- dena but they can be helpful to make quick in- results without spending hundreds of tured alcohol, which extracts the canna- house tests during the production pro- thousands of dollars on equipment and binoids. The bottle is placed in a heated cess. complex training. tray which is the part of the gas chro- More information: www.srigc.com.

24 | Marijuana Venture // April 2015

Marijuana Venture sought out a Living the group of professionals to tell the trials and tribulations of everyday DREAM life in the legal marijuana industry. 7 Leaf Collective Mike Warren Salem, Ore. Dispensary

ur dispensary has provided me with the opportunity to connect Owith a diverse set of patients. It has been an unexpected joy to be able to share a common ground through cannabis with others who I may have never known outside of the dispensary. One patient in particular comes to mind. He’s a baby boomer and one of a handful of deaf community patients we serve on a regular basis. Despite our initial communication challenges, we have improvised ways to have rich, enjoyable conversations. Our common language is cannabis. It has been a breeze to develop a non-ver- bal shorthand with this deaf patient because we both are fluent in cannabis lingo. Despite our mostly silent, panto- mimed exchanges, I always feel like I’ve had a robust and hearty conversation when he leaves our shop and I always look forward to his visits. These positive encounters reinforce my belief that the shared knowledge between cannabis patients, caregivers and others in the industry transcends our differences. It’s a bond that cuts across The entryway of 7 Leaf Collective features photos of famous individuals like Louie Armstrong, political, social, physical and even gener- Bruce Lee, Kareem Abdul Jabbar, Steve Jobs, John Lennon and Bob Dylan. ational lines. We all share the same stigma. We all understand the etiquette. We nity. causing such suffering because of their all have memories associated with this On the other side of the coin, these apathy toward cannabis. The genie is out plant. We all openly share our knowl- dispensary experiences can sometimes of the bong. It is time to discuss canna- edge and techniques used to consume feel bittersweet, especially when we bis fearlessly so that the stigma can be this plant. It’s like 70 years of speakeas- read the news. There is a stark contrast eradicated and we can more easily share ies that can now openly share their bar between how the media covers the can- wisdom that may benefit us all. notes. These open exchanges of cannabis nabis industry and the day-to-day reality ideas are bound to lead to a renaissance inside our dispensary. Mike Warren is the owner of 7 Leaf Collec- of growing and extraction techniques in It saddens me that I’m not able to tive, a state-licensed dispensary in Salem, Or- Oregon over the next decade that will share our dispensary experiences with egon. It can be found online at www.7leafore- improve the health of our entire commu- those community members who are gon.com.

26 | Marijuana Venture // April 2015

Trail Blazin’ Productions Danielle Rosellison Bellingham, Wash. Tier 2 Producer/Processor

e have no problems, only solutions.” “W This has quickly become our motto over the last 17 months. It was either that or crumble in self-pity happened before,” he assured us. We were so excited! It was like Christ- and devastation. Great, glad we could be the first. mas had come early. We tore open the I won’t bore you with the hundreds of Timing is everything. We ordered the boxes, threw aside the wrapping and … fires that we have encountered; just the lights knowing it would take five weeks saw nothing but pink. Sixteen-thousand highlights, which I’m sure everyone can for delivery. Clones were cut and nur- bags that were pink. Inhale calm ... ex- relate to. tured. At 4:45 p.m. on Day 35, we called, hale smile. Do you know what the rep We general contracted the build-out curious where our lights were. “Let me said? You guessed it. “This has never ourselves. For the record, small resi- check on that for you. Hmmm ... it says happened before.” dential remodels were the extent of our here that your lights are in the ware- In the beginning, every hurdle was contracting history. So a non-flamma- house. In Kentucky.” like a knife to the heart — forces trying ble, steel, commercial construction was Kentucky?! to tear apart our dream. Now, with our a large undertaking! We special-ordered “It says here they have been there for motto in mind, we roll our eyes, laugh two pieces to make our lives easier: the several weeks. For some reason they just every time something goes wrong, and main beams with pre-fabricated tabs at haven’t shipped yet. This has never hap- start working on how to fix it. 16 inches apart. About halfway through pened before.” There it was again. “It Because it’s not about if something construction we noticed the floor joists will take two weeks for delivery. Would is going to go wrong; it’s about, when were obviously not perpendicular. Turns you like me to ship them now?” Yes, we something goes wrong, and how we out, not all the tabs were 16 inches would like you to ship them now. choose to deal with it. apart. The VP of the beam fabricating We also ordered custom bags. We company flew out to look at the- con were going for hemp colored. The cus- Danielle Rosellison is one of the co-owners struction. Indeed, it was definitely a tom bags arrived late Thanksgiving of Trail Blazin’ Productions, a licensed pro- flaw in their product. “This has never Day, delivered to our home by the rep. ducer/processor in Bellingham, Washington.

I am always eager to take on new chal- knowing what to expect. I had spent the Recreational lenges. last 18 months dedicating my entire -be One of these challenges was being ing to assisting I-502 applicants, before Marijuana asked by Chris Crew, of THC Law Firm, fighting against the Liquor Control Board Management to testify as an expert witness in an ad- in a court of law for a complete stranger. ministrative hearing. It was between the When asked if I was being paid for my Colette Thomas Washington State Liquor Control Board services, I said yes, but said I would have Advisor and a retail applicant who was disqual- done it for free. The judge did not make ified prior to the lottery, due - toaDo a ruling on the case from the bench, but s February has come and gone, I cuSign error. Imagine that! If you have we are anticipating a victory. am amazed at all of the projects ever dealt with DocuSign, you probably I passionately believe the system is that have been transpiring since already know the system is sporadically flawed for several valid reasons. Many A flawed. Sometimes it works perfectly, applicants were disqualified, without CannaCon in Seattle. It’s refreshing to know that after a and other times important documents merit. The Liquor Control Board should year and a half of being enrolled at the are not received. take ownership for this and accommo- “University of I-502,” I am still able to The same uneasiness and fear of the date accordingly. bring value to the industry. unknown set in. Just like it did in the days There are more applicants and licens- leading up to the retail lottery, or before Colette Thomas is an advisor for -Recre ees that require assistance now than I our first final inspection for a retail store, ational Marijuana Management, which pro- could ever imagine. I have conquered or the first retail grand opening. It was vides consulting services for I-502 retailers several milestones with my clients and a bit awkward and uncomfortable, not on licensing and compliance.

28 | Marijuana Venture // April 2015

The Stig Anonymous Eastern Washington Pending Tier 3 Producer

pring is fast approaching. I’ve heard about several quick-flowering strains Slike Juicy Fruit, Pineapple Kush and Bubblegum that I want to investigate this year. My goal is to create a wall of beautiful, flowering, outdoor marijuana that is easy to harvest. To that end, my plan is to plant the same way a farmer who grows corn would: straight rows of plants all roughly the same size for easy harvesting. of marijuana is going to rapidly evolve into those who are stuck in the past. I’m also going to investigate the use of a commodity business in which those who power trimmers and any other farm equip- are able to do it with the lowest produc- The Stig currently has an application pend- ment that will reduce my cost of production costs will thrive, and those stuck in the ing for an outdoor, Tier 3 production license in tion and at the same time, increase my “old ways” will not. The “American way” Eastern Washington. He writes under an as- efficiency. My belief is that the production rewards those who innovate, and punishes sumed name to protect his anonymity.

have crafted these regulations to be initiative. The main goals of Proposi- Brooke Law instituted in whole, or in part, by any tion 65 are to protect Californians from government regulatory body. Use of the chemicals known to cause cancer, birth Group AHPA proposed regulations are now be- defects or other reproductive harm. In ing considered in about a dozen states. the case of marijuana, the state of Cal- Michele Brooke The APHA has offered these regulatory ifornia has determined the smoke from Pasadena, Calif. guidelines to any state or regulatory burned marijuana causes cancer. Mar- Attorney agency free of charge. ijuana has been on the list of harmful At the March meeting, the AHPA Can- substances since June 2009. Proposition nabis Committee discussed two import- 65 requires California dispensaries, with he American Herbal Products As- ant issues. First was the issue of making a certain number of employees, to post sociation (AHPA) Cannabis Com- medical claims or “cure claims” on mar- appropriate signage in the dispensary Tmittee met March 5 at the Natural ijuana product labels or in advertising. so the patients are given proper- ad Food Expo in Anaheim, California. The Second, we discussed California’s Prop- vance warning before their exposure to APHA is a national trade association in osition 65 warning requirements. smoke. the natural products industry, and the The issue of making medical claims re- Some dispensaries have been target- Cannabis Committee promotes and lated to marijuana or marijuana-infused ed by lawyers who want to take advan- propagates responsible commerce and products is one that concerns false ad- tage of the general ignorance of this regulation of marijuana. vertisement and that certain kinds of law by dispensary owners and manag- One significant contribution the AHPA claims could open people up to poten- ers, and to sue them in order to collect has made in furtherance of these goals tial lawsuits. the steep fines that may be sanctioned has been to craft comprehensive guid- We are all very excited about the against the unaware. ance in the form of sample regulations health benefits that are being discov- If you are not from California, you to regulatory bodies who may not un- ered in relation to medical marijuana, should check to see if your state has a derstand the nuances of cultivation, particularly with the discovery of CBD; similar law. If you are from California, how to run a dispensary, details on labo- but more research needs to be done you should check with your attorney to ratory testing, and best practices for the before anyone should make absolute ensure compliance with Proposition 65. production of cannabis-infused edible medical claims. These kinds of claims products. are discouraged at this point. Michele Brooke is an attorney in Califor- Working collaboratively, members of Proposition 65 is the Safe Drinking nia, who practices civil litigation and civil the Cannabis Committee, all of whom Water and Toxic Enforcement Act of cannabis law. Her firm can be found at are deeply entrenched in the industry, 1986, a California law passed by voter www.brookelawgroup.com.

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ith marijuana increasingly being le- alive.” taining higher margins than other stores, Wgalized for recreational use, an ev- The conversation began in the fall of Spencer said. er-evolving list of momentous events are 2013, nearly a year after the passage of The advantages also extend to the being etched into cannabis history. Initiative 502, and officially came to frui- store’s four full-time and seven part-time The first states to legalize marijuana. tion on March 7, 2015, when Mayor Don employees, who are eligible for “plati- The first retail sales. The first licensed Stevens made the first legal purchase of num level” health care benefits, Washing- producer. The first licensed edible - man marijuana in Skamania County history — ton’s public employees retirement system ufacturer. The Pacific Northwest recently four grams of various dried flowers for (PERS) and other government employee witnessed another big first in the cannabis $60. benefits, PDA board president Tim Dud- industry — the first municipally-owned ley said. marijuana retail store opened its doors to OPPOSITION Dudley said the concept was to hire the public March 8. Not everybody is going to be thrilled top-notch employees and avoid turnover Located along the southern border of about the opening of The Cannabis Cor- by offering decent wages and excellent Washington State, The Cannabis Corner ner. benefit packages. is operated by the North Bonneville Pub- There’s a definite question about the Employees of the store work for the lic Development Authority, a municipal reach of government authority, and wheth- PDA, not the city. corporation that was set up specifically to er or not a municipality should insert itself Each employee did have to pass a manage the retail operation. into private enterprise. pre-employment drug screening, although Profits from the store do not -feed di The PDA designation also gives The a positive test for cannabis would not rectly into the city’s general fund, but the Cannabis Corner an advantage that no have disqualified them from employment store’s revenue can be used to fund city other marijuana retailer in the state can Spencer said. projects in the form of grants. It could be match — exemption from federal income “I was quite upset, actually, when the a much-needed source of revenue for a tax. The potentially devastating effects of store manager came up totally clear on town that has less than 1,000 residents, no IRC 280E — a massive concern for near- marijuana,” he added. retail sector to speak of and has been tee- ly everybody in the cannabis industry — Hiring Robyn Legun as the store man- tering on the edge of bankruptcy for years. have no impact on The Cannabis Corner. ager was a key piece of the store’s infra- Consultant John Spencer, who orches- “It’s not a level playing field — and I structure, Spencer said. trated the business model for The Can- love it,” Spencer acknowledged. “It was vitally important that we hired a nabis Corner, described the city of North Because of a significantly lower tax good store manager who knew both retail Bonneville as being “so destitute that obligation, The Cannabis Corner can sell and marijuana.” we have resorted to selling drugs to stay products at a lower price, while main- >> CONTINUED ON PAGE 34

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<< CONTINUED FROM PAGE 32 Legun has quite a bit of authority to run the store as needed and make most purchases without needing to get approval from the PDA board, Dudley said. “We tried to find somebody who had a good retail background, and knew something about the product as well,” he said. “We were really looking for somebody had a stronger retail background than somebody who had pot knowledge.” The North Bonneville PDA was one of three lottery winners in Skamania Coun- ty, but it appears the other two applicants have stopped pursuing their licenses, at least for now, Spencer said. However, the North Bonneville PDA nearly missed its opportunity to open a store. Originally, the Washington State Liquor Control Board slotted two retail stores for Skamania County. When the lottery was held, the PDA’s application was initially ruled ineligible. and innovation, more than anything else. bans. Others implemented moratoriums to Further investigation revealed that ruling At a time when most small towns took a buy more time. to be incorrect, and the county’s allotment small-minded approach to change, North Bolstered by local voters’ support of was increased to three retail stores. Bonneville embraced the opportunity. I-502 at nearly 54% (and similar support After Washington voters approved county-wide), the North Bonneville City BUCKING THE SMALL-TOWN TREND I-502, cities and counties all across the Council took a vastly different approach. Ultimately, the story of The Cannabis state tackled the question of how they During a fall 2013 meeting, council mem- Corner is one of creativity, adaptation would respond. Many imposed outright >> CONTINUED ON PAGE 36

34 | Marijuana Venture // April 2015

John Spencer (left) and PDA board president Tim Dudley (right) speak with local journalist Philip Watness during the store’s opening.

<< CONTINUED FROM PAGE 34 paying customer, he’s ordered custom li- presented a unique opportunity. ber Charles Pace suggested the city open cense plates that read MJ MAYOR. Spencer was tasked with establishing its own retail store. As soon as the thought of a city-owned the PDA and setting up the business plans. The initial reaction was one of silence, retail store came about, the majority of the He penciled out financial projections that as those in attendance pondered the pos- five-person council saw the positives out- the store could effectively raise the city’s sibility. weighing the negatives, Stevens said. revenue by 20-70%. “We were taken by surprise because no- Eventually, that brought Spencer — “In my worst nightmares, this PDA body else had considered it,” Stevens said. who had left his position as North Bonne- will earn $150,000,” during its first year “But it made sense right from the start.” ville city administer several months earli- of operation, Spencer said. That’s a sig- By operating its own marijuana retail er — back into the fold. nificant source of income for a town that store, the city could maintain more control has an annual operating budget of about than if it were owned privately — another THE FUTURE $600,000. premise that is sure to make small-gov- After leaving his position with the city, “There’s definitely that excitement that ernment proponents cringe. Spencer and his sister had launched Pulse if this works, it could save the city,” Spen- “We could sit back and hope for the best Consulting, which primarily dealt with cer said. or grab the bull by the horns and control the health care industry, initially. Spencer said he generated his pro for- our destiny to a certain extent,” Stevens Spencer’s background included 15 ma based on the basic assumption that the said. “That’s what we’ve been able to do.” years of working in government, primar- store would draw customers only from Stevens has been a vocal supporter of ily in the finance sector. The recent years Skamania County residents and traffic the industry. he’d spent trying to keep North Bonne- along Highway 14. It’s currently the only He’s embraced the concept so much ville afloat financially were exhausting, marijuana retail store for about a 70-mile that in addition to being the store’s first but the opening of The Cannabis Corner >> CONTINUED ON PAGE 38

36 | Marijuana Venture // April 2015

<< CONTINUED FROM PAGE 36 the future of the Oregon market. stretch between the handful of shops in “We may well be a success, but if a store Vancouver and Margie’s Pot Shop in Bin- opens up across the river five minutes gen. away and their tax burden is one-quarter Spencer’s numbers indicate the store what ours is, we’re dead,” Spencer said. will be successful. But the city has put a “We may well survive, but we’ll be sur- lot of faith in him. It didn’t seek out an- viving off just the local people.” other independent analysis of the revenue As of now, Spencer is the only person projections. who has created a business model and Dudley, an accountant by trade, said he launched a municipally-owned and oper- tends be conservative by nature, but feels ated marijuana retail store. It’s a model he confident about the financial projections. plans on shopping around to other cities “We’re pretty confident that we will facing financial dire straits. more than exceed the numbers we have Shortly after The Cannabis Corner set,” Dudley said. opened, and significantly reduced Spen- During the store’s first week of opera- cer’s direct involvement with the PDA, he tion, sales averaged about $2,200 a day — was making plans to visit Oregon for the well below initial projections — accord- Liquor Control Commission’s series of ing to a story in The Washington Post. listening sessions. Although Spencer remains optimistic, tially created a challenge for the Wash- As for North Bonneville, Stevens hopes he said his professional training leads him ington State Liquor Control Board, which to see more state-licensed marijuana busi- to be “terrified.” had to do background checks on all five nesses set up in town. He’s hoping some “Remembering that I’m a finance guy, board members, all five financiers and all producer/processors may join the fray and my role is to continually scream doom their spouses. bring desperately needed jobs to Skama- and gloom so the elected officials won’t The PDA used some of the loan money nia County. He said half the county’s res- try to spend more money than they have,” to immediately pay back the start-up loan idents leave the county for work. There is he said. from the city. Now, its focus is to pay off some property that would be perfect for Spending money it doesn’t have is ex- as much of the outstanding debt as fast as a grow operation, said Stevens. However, actly what the city did to open The Can- humanly possible Spencer said. it’s owned by the local port authority and nabis Corner. The city provided a $15,000 Once the initial loan from the city was federal prohibition makes officials leery loan for the start-up expenses, then bor- paid off, most of the PDA’s detractors dis- of leasing to marijuana businesses. rowed about $235,000 from private, appeared, Stevens said. That’s just one more reason President non-equity investors. Spencer points out that his one great Obama needs to reschedule cannabis im- The financial structure of the PDA ini- fear regarding the success of the store is mediately, Stevens said.

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SPRING INTO ACTION ‘Tis the season to start getting plants in the ground and setting up your grow for this year’s harvest

40 | Marijuana Venture // April 2015 www.marijuanaventure.com | 41 Tomorrow’s success begins now Make a point of keeping up with preventive maintainance to ensure a plentiful crop By Chris Bayley

ven though we’re on the precipice of about maintenance, setting up crop sched- weren’t already tough enough to get — and Espring, it’s easy to imagine this year’s ules and turning outdoor dirt into black keep — a producer’s license in Washing- crop of plants swaying back and forth by gold by utilizing soil-building programs. ton State, be prepared to hand over more the wind’s gentle persuasion. Fortunately, than 40% of your earnings via taxes. This the reality of this dream is just around the GROWING PAINS means margins are already razor-thin. And corner, but there’s plenty of work to do as There’s a famous Benjamin Franklin here’s another reality check: Those grow- the growing season begins. quote that says “an ounce of prevention ing pains are compounded when battling Now is the time to think about preven- is worth a pound of cure.” The theme of pest and pathogen outbreaks. For the pro- tative measures that are necessary to avoid prevention has been a regular subject in ducers who are battling an infectious pest sub-par crops and crop failures. Preventa- the pages of this magazine. The reason for or pathogen, they can figure a revenue loss tive measures begin at germination, and such unrelenting repetitiveness is to ham- of at least 5%. This means that between must be continued during day-to-day op- mer home how important prevention is for taxes and pest management, producers are eration and through harvest time. This is the success of your operation. watching at least half of their earnings float especially important for licensed growers No producers will intentionally take steps right out the door, and this doesn’t even in- still in the design phase who are setting the that will lead to their business’ demise, but clude operating expenses. stage for future success. that’s potentially what can happen by over- These issues are most relevant to green- This is also the time of the year to talk looking preventative maintenance. As if it >> CONTINUED ON PAGE 44

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<< CONTINUED FROM PAGE 42 expectation of privacy. to watch producers getting stuck in the house and indoor growers. Luckily for out- This may not have any direct lawful constant loop of pest eradication. The un- door growers, the majority of these factors benefit to a business — cannabis -or oth fortunate thing about buying clones from a are mitigated through the checks and bal- erwise — but here’s the takeaway from third party is that it’s impossible to know ances of the outdoor growing environment. this: If you expect local law enforcement what’s flowing through a plant’s vascular or the state to support you, then protecting system, or what might sit invisibly on a POINTS OF PREVENTION the general populace and yourself through leaf’s surface. For these reasons, it’s worth Here’s a breakdown of preventative a designated curtilage area should go a the time to find high-quality seeds, and measures to follow when designing and long way in winning over the most staunch scratch that future headache off your list. operating a cannabis production facility. anti-cannabis opponents. Prevent your fa- Crop scheduling: Consistent crop Facility design: Every facility should cility from being an easy target, while si- scheduling is important for both the indoor be designed first and foremost with- pre multaneously protecting yourself with the and outdoor grower. With crop schedul- vention in mind. All entry points to the necessary privacy. ing, it’s important to begin by penciling facility need to be viewed as potential por- Employees and guests: As the manger the year out on paper. Having a bird’s eye tals for pests and pathogens. This includes of a production facility, it will be up to you view really allows you to visualize the se- all the fresh-air intakes, exhaust outtakes, to have every employee follow the correct quential steps you’ll take in order to stay windows, garage doors and walk-through protocol when entering and leaving the on top of that schedule. Whether you’re entry doors. Wherever air is coming in and facility. Every production facility should harvesting one crop a year or a dozen, al- out the facility, it needs to be filtered, and have an employee handbook that describes ways start with the harvest date and work the intake air needs to be UV sterilized. its policies and procedures in full, and it backward. Using an eight-week flowering All vehicle and employee access points should be read and signed by all employ- strain, and Aug. 3 as the target harvest date, need to be built utilizing airlocks that sepa- ees. The biggest concern, no matter who’s here’s what a basic crop schedule would rate the two environments. Airlocks aren’t entering the facility, is whether or not they look like: very preventative unless sterilization and are carrying a potential threat. pressurization are utilized. Remember, As far as employees go, hopefully they April 27 Clone 2 weeks all the natural checks and balances that understand the importance of being consci- May 11 Plant 4 weeks help the outdoor grower combat pests and entious when it comes to cleanliness before June 8 Florescence Induction 8 weeks pathogens goes right out the window when entering the facility. Just remember, being Aug. 3 Harvest growing indoors. jumped on by Fido or inadvertently brush- With measures put in place to prevent ing up against outdoor plant material could This is a basic outline, and there are lim- the invasion, other methods like in-room, dramatically increase your odds of becom- itless iterations of this schedule. Sometimes recirculating, sterilizing filter boxes need ing a carrier for pests and pathogens. cloning takes longer than expected. Maybe to be utilized. Depending on your HVAC This same facet applies for all state in- there are various transplanting stages, or system, you may be able to take care of this spectors, law enforcement, consultants, depending on the size of your plants prior via the air handling unit. For those of you contractors and guests. It’s quite a conun- to flowering, the growth stage could last running closed-loop systems, every room drum as far as state inspectors go. For the from one week to four months. Once the should have independent filtering and ster- sake of efficiency, state inspectors proba- crop schedule is understood, growers have ilizing systems. bly try to hit as many production facilities the ability to forecast their harvest dates as Perhaps the most critical application as possible within any particular route. The far into the future as they want. Doing so though is in the drying and curing rooms. downside to this, as they weave in and out provides an itinerary to follow, which, in Plant material is most susceptible to patho- of facilities, is that they’re likely to be- turn, keeps responsibilities as focused and genic attack at this stage, and there’s no come a conduit for hitchhiking pests. At efficient as possible. such thing as redundant prevention here. the minimum, producers should keep dis- Crop schedules will look considerably Defining facility curtilage: Here is the posable booties on hand so it’s convenient different for indoor and outdoor growers. definition of curtilage via Webster’s- Dic for inspectors to slip them on before enter- For Indoor growers, harvests can be timed tionary: “A piece of ground (as a yard or ing the facility. from every day to once a month, while out- courtyard) within the fence surrounding For those producers who want to capi- door growers, at least in the Northwest, get the house.” talize on tourism, consider viewing portals to focus on one crop. The exception to this This term technically and lawfully rep- or designated walk-through rooms because is greenhouse growers who can capitalize resents a scenario where a physical barri- every tour that comes through could be a on the best of both worlds. er has been placed a reasonable distance roll of the dice. Scheduling possibilities for greenhouse from the home, making it obvious that the Genetics: For producers who don’t al- growers are extensive. First, it should be space between the home and the barrier ready have their genetics and have to out- noted that hoop houses and greenhouses are considered private-use space. Many source them, there are two options — take are completely different growing systems. homeowners have lost self-defense cases your chances by purchasing clones or be- Hoop houses are not considered green- based on the fact that they didn’t reason- gin from seed. Most experts would advise houses, but rather season extenders, be- ably show the space immediately around beginning from seed. There are too many cause they offer very little environmental their home as private-use space, or rather, producers who are battling spider mites control. They’re not typically designed to a space that clearly defines a reasonable and powdery mildew in vain. It’s difficult >> CONTINUED ON PAGE 46

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<< CONTINUED FROM PAGE 44 cludes air leaks, torn insulation, UV bulb If there’s any dirty work that needs to be used with light deprivation systems, and damage and filters. The same routine goes be done, this is the time. Perhaps it’s ex- are more difficult in terms of sealing out for all openings in the building’s envelope. panding the canopy footprint, rebuilding pests. View hoop houses as a tool to pre- These openings (windows, doors, air in- and re-graveling driveways, reseeding vent fall rains and frost from hitting your takes and exhaust ports) need to be exam- your lawn area or the grass strips between crops. This means that growing in hoop ined for possible damage, and repaired or planting rows. Any water-related projects houses isn’t much different than growing resealed if necessary. Look at the mechani- like new irrigation lines, upgrading water outdoors as far as crop scheduling is con- cal entry points such as water and electrical or sewer needs, or any well work should cerned. On the other hand, producers who outlets. be done before things heat up and heavy use true light-dep greenhouses can flower Always keep a safe distance from pow- demand sets in. cannabis year-round, just like indoor grower lines and transformers, and if anything Greenhouse growers need to follow ers, while leaving a lighter carbon footprint seems out of place, call your local utility the same inspection routine on all entry and a lower monthly electricity bill. district or electric company immediate- points. Check for structural damage along ly. If you have any outdoor water storage with making sure the greenhouse covering SPRINGTIME MAINTENANCE tanks, propane tanks, frost control systems, material is intact. Repair or replace any Any buildings with filter housings that outdoor irrigation lines, weather stations, damaged material. If you have a glass or pass through an exterior wall need to be communication equipment, surveillance polycarbonate material that can withstand inspected inside and out. Establish a fil- and security systems, etc. — everything pressure, don’t be afraid to wash it down. ter housing maintenance checklist that in- needs to be inspected regularly. >> CONTINUED ON PAGE 48

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<< CONTINUED FROM PAGE 44 Cheaper plastics fall prey to the sun’s intense rays fairly quickly. If using plastics, familiarize yourself with the material’s strength during the installation process. New plastics are very resilient and quite tough. However, if the plastic is gets to the point where it’s brittle, a fracturing process tends to spread very fast, potentially leaving your crops exposed and vulnerable.

SOIL-BUILDING PROGRAMS In-ground, sun-grown cannabis is as good as it gets, with the only real competition being in-ground, greenhouse-grown cannabis. Either way, what makes it the best is that nature got her way. The plant was cultivated under conditions in which it was blueprinted to perform. This means that the plant was powered by the sun while being sustained via the soil food web (SFW). There are very few places where the soil is registering the perfect pH level, along with balanced bio-available nutrients. The reason for undertaking a soil-building program is to continually improve your planting site’s fertility from one season to the next. Regardless of your growing experience, producers who are planting directly in the ground would benefit from working with a soil scientist, such as the folks at Eco Par- adigm out of Eastern Washington. Phillip Small and Richard Freeman are soil scientists who have decades of experience that can knock your learning curve out of the park. Why do you need soil scientists? Cost savings. It can take several seasons to fully optimize a grow site, and hiring an expert can take the guesswork out the whole program. In turn, you get optimized plant production, as opposed to making a mistake that diminishes crop yield and your bottom line. The whole program begins by taking soil and water samples, to look at the pH along with nutrient level and balance, and the applied amendments have all winter to but some of the components used within the analyses become the blueprints from get worked over by the microbial life. By soil building programs. If the soil in your which the soil-building program begins. spring the nutrients have had time to bal- outdoor planting site is low quality, then You need to have a complete understand- ance out and become more bio-available. it’s advisable to bring in a commercial- ing of chemistry and soil biology in order Beginning in early spring, a second soil ly-mixed soil designed for cannabis. to interpret the analysis and move forward analysis can be done to see how all the Remember, stay focused and let it grow. with the proper amendments. Once the nutrients and pH have balanced. From analysis is interpreted, the soil-building this point forward, ongoing seasonal test- Chris Bayley owns and operates a cannabis program can proceed. Generally the best ing, reapplied amendments, compost teas, consulting company called Hortistructure, Inc. time to commence the program is imme- mulches, nitrogen fixing cover crops, top He can be contacted at cbayley@hortistructure. diately after the fall harvest. In doing this, dressings and plant tissue analysis are net.

48 | Marijuana Venture // April 2015

GROWING GREENER The pros and cons of going organic By Christen McCurdy

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hile a growing number of Wconsumers and growers ap- preciate the concept of organically-produced cannabis, right now the legal industry occupies a gray area when it comes to verification. -Be cause cannabis remains illegal federally, the United States Department of Agriculture has said it won’t certify operations as organic. But two private companies — Clean Green Certified, and more recently, Certified Kind — have been created to offer their own inspection services and certify legal growers. Both use principles derived from existing USDA and other organic standards. David Rice, proprietor of Sun Grown, the first state-licensed grow operation to receive Certified Kind approval in Washington, said he decided to use organic methods out of concern for “the triple bottom line” — that is, out of consideration for the social and environmental impacts, as well as the economic as- Emerald Twist pect. Rice said growing with organic grower Mike Burroughs methods offers growers the potential shows off to increase their market value while some giant also doing right by the environment, buds. and — over time at least — reducing their own overhead. “In this unregulated industry, anybody Kind, which started certifying cannabis op- “The very word sustainable cuts both can say they’re anything,” Van Hook said. erations in 2014, also has a background in ways,” Rice said. “It’s about the long term. In Washington, more than 60 of the busi- certifying organic fruit and vegetable farms. You don’t have to repurchase new things all nesses that applied for I-502 licenses used He also works for Oregon Tilth, which has the time.” some variation of the word “organic” in been certifying organic food growers since Chris Van Hook, the founder of Clean their trade name. Van Hook also suggested 1984. Green Certified, said in 2003, when he was that even growers who don’t want to brand Black has primarily worked with grow- working as a USDA organic inspector for themselves as organic should pay attention ers on the West Coast and has certified two Globalculture, medical growers in Califor- to organic standards, as he believes some farms, with another two in process. Van nia started approaching him about getting growers use pesticides that aren’t currently Hook estimates he has certified an average organic certification. Clean Green’s certi- legal for food products. of 70 operations per year in 10 years in Cal- fication criteria are based primarily on the “People have been using sprays that are ifornia, Oregon and Washington. USDA organic standard, though some as- not legal for cannabis and would absolutely Emerald Twist was the first grower, un- pects are derived from international organic not be using for any other agricultural crop. der Washington’s Initiative 502, to receive standards. As it becomes federally legal that process Clean Green Certification. Jerry Lapora, He noted that the USDA is not just refus- will be done away with,” he said. Those spokesman for Emerald Twist, said the ing to certify cannabis, but is ignoring the growers who are using illegal sprays will process was relatively straight-forward, industry in general. It hasn’t been fining have to race to keep up with regulations since the grow operation already placed a producers — who, in the food world, can should the crop be federally legalized and high emphasis on organic methods. But he pay fines of up to $11,000 — for mislabel- regulated. cautioned growers to research some of the ing a product with “organic” on the label. Andrew Black, the founder of Certified >> CONTINUED ON PAGE 54

www.marijuanaventure.com | 53 Emerald Twist’s Jack Herer.

<< CONTINUED FROM PAGE 53 products they use carefully: some products commonly available in grow stores use words like “organic” and “natural” in their branding, but are actually synthetic. Grow- ers should seek out products with USDA or Organic Materials Review Institute stamps on the label, he said. Getting one of the existing certifications generally costs anywhere from $1,800 to $2,200. The timing from application to certification can take as little as a week and as much as six to eight weeks, depending on whether there are issues that need to be addressed. In addition to making sure the grow operation uses organic processes, both Clean Green and Certified Kind check work areas to ensure they’re clean and san- itary, similar to protocols for a restaurant or food-handling facility, since the product David Rice in may be ingested. his Sun Grown About 91% of grow operations pass their greenhouse. inspections right away, Van Hook said. The most common problems among those that don’t pass are failed soil tests or using mis- ment of workers, including a clean, safe “We don’t want to recreate a bad system,” labeled fertilizers or pesticides. and pesticide-free production environment. Black said. Certified Kind’s criteria also include a so- Certified Kind growers must also allow Organic fruits and vegetables fetch high- cial justice component involving fair treat- workers to engage in collective bargaining. >> CONTINUED ON PAGE 56

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<< CONTINUED FROM PAGE 54 er prices at grocery stores and farmers’ markets — but it’s hard to say whether that’s actually true for cannabis. Maz Momeni, chief learning officer of the Cannabis Commodities Exchange, which tracks price fluctuations in the cannabis market, didn’t have data on how many legal cannabis products brand themselves as organic, but estimated they make up a tiny portion of the marketplace. Similarly, organic foods account for only about 4% of foods sold in the U.S. according to the U.S.D.A., although about 75% of grocery stores carry some organic food items. Growers themselves differ about whether certification — or the presence of a label that claims the product inside is “organic” — can fetch a higher price or increase profit margins. Jim Murphy, of TJ’s Gardens, a medical grow operation based in Washington, has been using organic methods since he started his operation. TJ’s Gardens was certified through Clean Green about a year ago. “We’re making medicine. There’s no better way to make medicine than organically,” Murphy said. “Why would you bring chemicals into a sick person’s world? We’re not going to do it.” Clark Tippin, executive director of the Organic Cannabis Growers Society, said there’s a higher learning curve to using organic gardening methods in general, and that the time, intuition and attention involved aren’t easy to package and sell. He also noted that conventional, non-organic methods, such as hydroponics, can be expensive as well. The society features about 280 members, whom Tippin advises on organic growing methods. “I’m trying to find the easy way to be organic,” Tippin said. “I’m an intuitive gar- dener and that’s not necessarily the easy way.” Lapora said growers who want to focus on organic methods should be prepared to spend more for organic fertilizers and pesticides, and expect a higher rate of crop loss, since organic growers use gentler methods to contain insect infestation. Murphy added that traditional growers who want to shift to organic, or people who want to start grow operations and are interested in organic methods, should be prepared to spend more money up front. “If money’s your only purpose then you should grow with chemicals,” Murphy said. “That’s without question.”

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Greenhouses in New Mexico maintained by the U.S. Department of Energy.

much light reaches your crops. Using retractable curtains on the inside of your Shading your greenhouse greenhouse can easily rectify problems of excess light, and depending on the quali- Scorching weather may force growers to shield their plants ty of the material, the investment will last for several years. However, unlike shading By Patrick Wagner compound, the light is reflected outward, or greenhouse growers in certain re- directly to the windows. but heat is still allowed in. Growers using Fgions, there might be times of the year Shading compounds, which can be shading curtains inside their greenhouse when limiting the temperature and light found at most gardening stores, will keep may need to pay closer attention to the for sensitive crops could be paramount to out excess heat because they retain reflec- heat or address that issue with a cooling success. tive qualities and will reduce the light that system. Published research by greenhouse ex- enters the greenhouse. The advantage of The shading curtains can also be in- pert Erik Runkle, associate professor of using a shading compound is immediately stalled on the outside of the greenhouse, or horticulture at Michigan State University, apparent to the person holding the check- even going so far as installing a dual cur- outlines different methods of shading a book — it’s cheap. tain system comprised of an open-weave commercial greenhouse. The downside, however, to using a com- curtain to control light and a solid curtain The potential for year-round growing, pound on your windows is that it never to control the amount of heat that enters or even for northern growers in the winter, stops working, even when you don’t need leaves the greenhouse. is one of the major advantages of green- it. The time required to apply, then remove Both shading compounds and retract- houses. But that benefit could do more shading compound can be significant. It able curtains will protect your greenhouse damage at certain times of the year. To often comes in different levels of adhesion from potential harm from overexposure. prevent plants from overheating or being for seasonal shading, year-round shading Retractable curtains may be more expen- subjected to overly intense lighting condi- or a permanent change. It also should be sive but they control light to a better de- tions, shading could be the best option and mentioned that shading compounds dis- gree and during the winter months they easiest solution to implement. The tem- integrate over time and the percentage of can simply remain holstered until the fol- perature and lighting requirements of each shade created by the compound slowly lowing spring or summer. plant and each region will determine if and decreases. On the other hand, shading compounds when shading might be needed. Although considerably more expensive, can provide an inexpensive solution to ex- The two primary methods of shading a retractable shading curtains or black-out cessive sunlight but will need to be man- greenhouse are with a curtain or by using cloths can provide a much more controlled ually removed for the low-light winter a shading compound that can be applied environment when trying to regulate how months.

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NCIA Executive Director Aaron Smith takes the podium to kick off the third and final day of symposiums.

vation isn’t enough in most cases. Stokes went far enough to say that technology Time to talk cultivation itself is ineffective — it takes a sensible application of tech for it to become a fac- Industry leaders meet in Seattle for growers seminar tor in a business model. “We like to use technology for oper- By Patrick Wagner ational purposes as well as security,” he Cultivation Management Sympo- Keich, executive director of Canna Con- Stokes said. “We believe that if you de- Tsium brought together a wide range sulting Group, said. “It’s imperative in sign your security system appropriate- of sectors from the cannabis industry for this industry that you have a roadmap to ly and you educate you staff and your a whirlwind of group workshops, tours success.” vendors and anybody else that comes in and 23 educational seminars in Seattle on Keich’s statements were echoed contact with you facility, then the chances March 16-18. throughout the seminars, where an over- that you will really be needing it for secu- The event, hosted by the National Can- all combination of tech and planning be- rity reasons drastically decreases.” nabis Industry Association, featured both gan to form during each of the presenta- Amy Poinsett, co-founder and CEO of broad talking points like the current ditions. The whole of the speakers seemed MJ Freeway explained that the new tech- rection of cannabis cultivation and inte- to agree that although simply being com- nology does not undermine the know- grating technology into growing, to more pliant with each state’s governing agen- how of experienced cultivators. specific points like strain creation and cy will keep the state from shutting your “Technology simply can’t replace the waste management. business down, success will be earned by years of experience and the deep knowl- The range of topics varied as much as those who coordinate the state require- edge of a master grower,” Poinsett said. the speakers presenting them, but many ments to support their business plans. “But what it can do is put tools in the had similar underlying messages for their As Noah Stokes, founder of Canna- hands of a master grower to help clear- audiences. Guard Security explained during his ly and objectively track results and en- “If you’re going to take away anything shared symposium, Securing Your Grow, vironmental factors overtime and across from this conference, it is to plan,” Karl that the marriage between tech and culti- surfaces.”

60 | Marijuana Venture // April 2015 Grow More. Use Less.

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Contact Bradey Day · 360.350.9138 · [email protected] www.ecogrowlighting.com EcoGrow™ Lighting Systems · 4600 NW Camas Meadows Drive Suite 210 · Camas WA 98607 · 360.567.1923 Rooftop-mounted chillers made by Surna. Innovations in grow-room tech Commercial cannabis producers can benefit from modern cooling and insulation products By Steven P. Fuhr ost growers know the basic formula INSULATING YOUR “ENVELOPE” PREVENTS Mfor a winning crop. Start with solid genetics, add a proven feeding, pest management and watering schedule, wrap all HEAT TRANSFER, BUT IT CAN ALSO REDUCE it all up in a carefully-controlled environ- UNWANTED OUTDOOR PATHOGENS AND ment from beginning to end, and you will consistently produce high-quality prod- SPIKES IN MOISTURE LEVELS. uct. However, the reality of executing these deceptively simple steps is complex, There are hundreds of great articles on bids to completely cover both ceilings and and on a commercial scale, it can also be this subject, in addition to volumes upon floors of a new, 5,000-square-foot build- extremely expensive to accomplish. volumes of International Building Code ing to that level were between $25,000 A grower can start with the best strains (IBC), but after two years of obsessive- and $50,000, so there’s a wide range of on earth, feed them top-of-line nutrients, ly searching for the ultimate materials to options — most of which would be the and use only the purest spring water, but if set up a cannabis production building, the wrong choice for high-moisture grow your environmental controls aren’t dialed answer may have been found in the most rooms. This is where soy and some new in perfectly, your crop is destined for cost- unlikely of possibilities: Soy. innovations come in. ly failure. Fortunately, recent innovations Insulating a building’s envelope is often Everybody has heard the stories of peo- in building systems are providing some required by the Washington State Energy ple growing in metal buildings that rain in- noteworthy environmental solutions for Conservation Code and IBC, with some side, and we know that doesn’t work, but I large-scale grow operations. exceptions for agricultural buildings like will never forget when I first walked in a Controlling an indoor agricultural en- greenhouses. In the end, most counties grow that had fiberglass insulation on the vironment falls into a few main areas. will require insulation for occupied com- walls and ceiling. The black mold was ev- Insulating your “envelope” prevents heat mercial structures. This is a little different ident everywhere, and the stained surface transfer, but it can also reduce unwanted for every area based on average weather, was obviously un-washable. However, outdoor pathogens and spikes in moisture but for most of people, walls need to be the real shocker was in the ceilings. As the levels. at least R-21 and ceilings R-38. Recent >> CONTINUED ON PAGE 64

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<< CONTINUED FROM PAGE 62 times, and plus or minus 2% on moisture motors covered in resin. If it’s done right, fiberglass absorbed moisture, large bags levels, with no peaks or valleys. Many not only do you get a system that costs of retained water would form — period- old-school growers cobbled together two-thirds what traditional HVAC costs, ically bursting over the plants and lights venting systems to do this, but that never it’s much less expensive to run and main- below as they got too heavy. Rodents and works in rooms with more than a half doz- tain. Best of all, you end up with a truly insects often made spaces to nest in these en lights, or in moist climates. More en- sealed grow room that is less likely to in- fibers too. Many other common insulators lightened growers invest in traditional air hale problems or exhale smells. do the same or worse, like plastic-based, conditioners, which work well, but even This system uses air handlers that have open-cell foam and pure cellulose (wood) standard HVAC systems bring their own water lines running to them with chilled fiber. The solution we found is a closed- set of problems. water. The warmed water is sent to chillers cell spray foam from BASF that is imper- First and foremost, traditional HVAC outside the building that can either pas- vious to moisture, mold, mildew, insects is expensive. For our 5,000-square-foot sively and more economically dump the and rodents. grow, we had HVAC bids as high as heat when it’s below 45 degrees outside, Because the base is sugar and soy $180,000, with the average being around or actively cool it with standard condens- beans, it is certified food grade, and it’s $100,000. Secondly, condensing air and ers. No evaporative cooling takes place, so strong, it increases tensile strength of cooling it is extremely inefficient and so it works well in damp or cold climates, walls by up to 200%. Best of all, at R-7 power hungry, which and because you are per inch, it’s a thin, light structural load means it’s costly MUCH LIKE THE cooling water instead on walls. To meet one-hour fire wall code to run. If you think of air, the whole requirements, you can either sheetrock HID lights suck a lot INSULATION system is five times over the top or spray a special one-hour of juice, go take a more efficient to run. fire retardant paint over the foam. look at the power use COMPANIES, This same system This spray-on fire retardant is- ex on your HVAC air- can even be linked to pensive, but if you don’t have the load chillers. The reason IT’S WORTH hydro-nutrient tanks strength in your building to handle the is that with standard MENTIONING THAT to cool root water. weight of sheetrock, you may find it’s HVAC you’re either Cooler roots lets you much cheaper than structurally retrofitting taking air from the OF FOUR DIFFERENT keep room temps your whole building. outside and making higher while keeping The final result of this foam is an air- it cooler, or cooling PROCESS-COOLING root rot and aphids at tight, moisture-proof envelopment that is the inside air with a bay. Interestingly, the perfect for indoor agriculture. closed-loop system. CONTRACTORS, company we chose One final note about this foam insula- From a thermody- just developed a new, tion: There are only a few companies in namic standpoint, HALF SAID THEY commercial-grade, the Pacific Northwest that have the- ex water transfers heat water-cooled hood pensive truck-mounted system required five times more - effi WOULD NOT DO that takes 60% of the to spray it on, and a couple are gaining a ciently than air. As a BUSINESS WITH A heat out at the light, solid reputation for specializing in grow- result, water-cooling which will be avail- room jobs. I try not to promote specif- towers are the way CANNABIS GROW. able this spring. ic companies publicly, so if you want to many large commer- Much like the insu- know the contractor we chose, send me cial buildings go; however, standard wa- lation companies, it’s worth mentioning an email and I will forward their contact ter-cooled systems often use evaporative that of four different process-cooling con- information. Two of the four Washington water-cooling towers that do not work tractors, half said they would not do busi- contractors I called firmly said they will well in damp climates. Not to mention ness with a cannabis grow. As frustrating not do “pot” farms, so I suggest being up evaporative water-cooling towers tend to as that can be, these companies do make front with your intended use when you start at $200,000 for a small system, and the bid process a whole lot easier. put this out to bid. Keep in mind I get no the cost goes up from there — way up. No matter what systems you go with in compensation for referring anyone to any There is a new system now that one the end, I can say for certain you want to sources. I make these offers to help oth- could go so far as to say is designed just start by doing your homework on the dif- ers purely so our industry as a whole can for high-humidity, high-temperature envi- ferent products before choosing one. thrive. ronments, but it’s not HVAC. It’s process Then make 100% sure it meets the Once the envelope has been insulated cooling. More accurately, it’s an old tech- requirements of your local building de- and sealed, it’s time to regulate the tem- nology with a new application, and it has partment and fire inspector. Finally, hire perature inside. The goal is to keep your been engineered specifically to work in a contractor that understands the special room cool when the lights are on, warm high-temperature/high-humidity rooms. challenges of our industry, and is willing when they aren’t, with moisture levels The principle of this new application is to work on a cannabis farm. consistently in check. simple — take the heat out of the room The key is consistency, with the gold before it heats the air. Steven P. Fuhr is a managing member of Ag- standard being plus or minus 2 degrees This means no air ducts, no filtering air roPack LLC. He can be contacted with ques- on your desired temperature levels at all from the outside, no burnt-out mini-split tions at [email protected].

64 | Marijuana Venture // April 2015

The most potent bud ever? Test results suggest Steve Walser’s sample of God’s Gift is the most potent cannabis ever tested, but the full story is much more complicated By Garrett Rudolph

know many of our readers picked up tested at 41.7% THC-A and 36.6% total test higher than those that are not ground to I this issue of Marijuana Venture and did THC (other cannabinoids measured at less the same level. a double-take at the cover. Reactions prob- than 0.1%). “We’re not doing anything we’re not ably included shock, disbelief, curiosity, Walser fully admits he was skeptical supposed to do,” she said of grinding sam- jealousy, excitement and maybe everything when he heard the result. Anatek lab man- ples into a fine powder. in between. ager Kathy Sattler also admits to being In addition to Sattler, we spoke with a Before we go any further, allow me to skeptical, but she told Marijuana Venture variety of other people involved in testing, provide some of the back story on “the that that particular sample was re-extracted growing and other facets of the cannabis most potent bud ever” and why, after much and retested multiple times, and the ma- industry. One of the common responses we internal debate and a lot of phone calls, we chines were recalibrated to make sure they heard was that a number that high is im- decided to publish a story — submitted by were correct. possible. the grower — on a cannabis sample that She stands by the result, even in the face Aaron Stancik, science director at Can- tested at 41.7% THC-A. of negativity from other testing labs and naSafe Analytics called it “an outlandish In early March, we received an editorial producers. number.” submission from Steve Walser, grower and “I know that a lot of people are saying He said the highest potency his lab has owner of Buddy Bar Farm, located in Ford, that Anatek’s getting so much higher (re- seen is about 28%. Washington. sults) than anybody else,” Sattler said. “So Several people acknowledged that 40% We knew he had been researching and we’ve been looking at why we’re getting THC buds are possible, but outliers in any working on a story about laboratory testing higher.” testing circumstance should draw red flags. for quite some time before submitting the She said her lab is following proper pro- There are plenty of accusations flying story, but the interesting thing was what cedures step by step. Samples are dried for around Washington about producers at- drove him to do some fairly exhaustive re- 24 hours at 35 degrees Celsius. Then they tempting to game the system by dipping search. get ground to a fine powder by hand with buds in hash oil or rolling them in kief. The In early October, Walser received some a mortar and pestle, before being extracted same accusations are shot at testing labs, as eye-popping test results from Anatek Labs with isopropyl alcohol, weighed and tested. if they are handing out higher numbers to in Spokane. His God’s Gift strain, submit- She said her studies have shown that gain more clients. ted to the lab on Oct. 10, 2014 had been buds that are ground to a fine powder do But where is the proof?

66 | Marijuana Venture // April 2015 Sattler said Anatek’s cannabis sector only makes up a miniscule portion of the business, which focuses primarily on environmental testing and water quality. “That portion of the business (cannabis) is less than 1% of our total business. People come to me and say, ‘You have an interest to get higher results to get more business.’ I could put a sign on my door that says, ‘No more cannabis,’ today and we would still be in business. I don’t care if people get high results.” She said the credibility of providing ac- curate information is more important the broad scope of Anatek than it is to make a money grab for extra cannabis clients. In some cases, Anatek has sent out samples to other labs to double-check results. Sometimes the result comes back the same and other times it has come back lower from the other lab, Sattler said. In the case of Walser’s controversial sample, there wasn’t enough left to send out to other labs after retesting it several times, Sattler said. As far as producers “spiking” their own samples, Sattler said she doesn’t think that’s common. Each sample is thoroughly inspected visually, she said, for any abnor- malities or foreign matter. If hash oil were to be added to the samples, she said it would be noticeable when the lab technician at- tempted to grind it into a fine powder. We knew that Sattler and Anatek would stand by their test results, and that Walser would stand by his product. We also knew that every other testing lab and producer would cry foul. But it’s one person’s word against another, at least until a better system for testing can be implemented. If nothing else, this story shows the potential for significant discrepancy between one lab and another, and highlights the need for more defined regulations. When we heard of a flower testing at higher than 40%, we were initially skeptical, and frankly, we remain skeptical. We didn’t decide to publish Steve Wals- er’s story because we were ignorant of the debate it would ignite. We publish his story because we look forward to that debate. Ul- timately, we will be a voice that helps move this industry forward, rather than enabling it to stand still.

Garrett Rudolph is the editor of Marijuana Venture. He can be reached by emailing Edi- [email protected].

www.marijuanaventure.com | 67 Steve Walser (right) and business partner DJ Parker. Potency in the Era of Mass Testing Abnormally high test result sends Washington grower on a hunt for more information By Steve Walser | Photos courtesy Buddy Boy Farm here is a lot of confusion and a num- ing 41.7% THC-A. I was astounded, and, I WAS ASTOUNDED, Tber of misconceptions about what at first, quite skeptical that this could be mandated potency testing can tell us about true. AND, AT FIRST, the cannabis being sold in Washington’s We had already seen some test results retail stores. Although I am not a scien- higher than 30%, but I figured that some- QUITE SKEPTICAL tist, I am a long-time, large-scale organic how, somewhere a mistake had been farmer who has, over the years, learned made to give a result that high. After all, THAT THIS COULD how to (mostly) separate fact from fiction even Cannabis Cup winners were only when it comes to agricultural testing. showing values of 26-28%. BE TRUE. I am a believer in large amounts of data The desire to understand these high re- of them because we think they give better that can shed light on obscure facts, so I sults led me on a three-month investiga- results than others. In fact, we have found hope that sharing a little of what I have tion and a brought me to a few interesting that variance from plant to plant, strain discovered during the last few months realizations. to strain, and even bud to bud seems to will help us all understand this new in- overwhelm any difference we see from dustry better. THE LABS lab to lab. My interest in testing arose in early Oc- At Buddy Boy Farm we use four differ- My first stop after digesting the result tober. While we were harvesting and cur- ent labs for testing. We do this for various was Anatek Labs in Spokane, where this ing our first large outdoor crop at Buddy reasons including cost, pickup schedule particular sample was tested. Anatek is Boy Farm, we received a test result show- and local convenience. We don’t use any >> CONTINUED ON PAGE 70

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<< CONTINUED FROM PAGE 68 somewhat unique among state-certified cannabis testing labs because it is an established environmental testing lab that added cannabis to an already deeply-experienced testing background. Anatek is independently certified by National- En vironmental Laboratory Accreditation Conference NELAC, which is a nation- ally-recognized, third-party certifier that tests labs on procedures and accuracy. Such third-party testing is a require- ment of many governmental organizations if one wants to use the results from the lab. In any case, when I relayed my skep- ticism about the high test results to lab director Kathy Sattler, she confessed she was also skeptical when the results first came in. So she had her lab technician retest the sample. When that result proved consistent with the initial finding, she ordered a new calibration standard for her Agilent Technologies 1260 Infinity HPLC - ma chine that Anatek uses. The machine was recalibrated and the sample was retested. The result was the same. The lab took another extraction from A chart from “Analysis of Cannabis Seizures in NSW, Australia: Cannabis Potency and Cannabinoid the sample and retested it several more Profile,” which was published on the scientific journal PLOS One, showing the plot of tests for times. All results were consistent with the THC-A values referenced in this story. first measurement. After all this testing I asked her for her confidence level about the result. She said she was 100% confi- I thought, “Here is a world-renowned had been published several years ago in dent about the test result. expert who might be able to explain this the well-regarded, peer-reviewed, sci- An interesting side note is that while I seemingly anomalous result.” entific journal PLOS ONE. This study was looking into all this I engaged in an Dr. Page patiently heard me out as changed his mind about the potential for online discussion with a lab owner who I explained my journey to that point, the cannabis plant to produce high THC took the position that any results higher with the retesting, recalibration, re-ex- levels. The study was based on 218 sam- than 30% were the either the result of er- traction and the final, consistently high ples seized by New South Wales police. ror or malfeasance on the part of the lab test result Anatek It found a wide distri- issuing the results. The discussion contin- had found. After I THIS STUDY bution of THC levels ued until eight of the 15 samples we sent finished, he drew a with the high being a to his lab that week registered higher than deep breath and pro- CHANGED HIS tested THC-A level 30%. I guess he must have had a change ceeded to explain that of 39.8%. of heart after that. if I had brought my MIND ABOUT THE Dr. Page had met result to him three POTENTIAL FOR the scientists in- DIGGING DEEPER or four years ago he volved personally I didn’t doubt Kathy Sattler’s sincerity would have agreed THE CANNABIS and felt their meth- or methodology, but I still thought there that something was odology and data had to be a mistake somewhere. I didn’t amiss. At that point, PLANT TO PRODUCE were rigorous. Based believe such high results could be pro- he too had believed on this research, he duced by a cannabis plant no matter how that 27-28% was the HIGH THC LEVELS. now believes that, well grown. I looked for an expert to talk maximum potential although rare, the to. To that end, I found Dr. Jonathan Page, for tested THC in cannabis. After all, cannabis plant is capable of the levels we an adjunct professor of botany at the Uni- up to that time that was all anybody had are seeing. He no longer found it implau- versity of British Columbia. He is the sci- seen. He then told me about a study out sible to believe such results and given the entist who led the first team in the world of New South Wales, Australia that was retesting and recalibration protocols fol- to sequence the cannabis genome. funded by the Australian government and >> CONTINUED ON PAGE 72

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<< CONTINUED FROM PAGE 70 New! I-502 Compliant Policies at Lower Rates lowed by Anatek, he found no reason to doubt the result. Page 70 features a chart I have repro- duced showing THC-A values found in this study that I think sheds valuable light on this still developing story. I also filed a Freedom of Information Act request with the Washington State Liquor Control Board and subsequently received a database of all I-502 test results through mid-December 2014. Upon analysis of the data and information from A Division of Premier Southwest Insurance Group both Washington and Australia, I found the following: • Total number of flower tests in the Australian sample: 218. • Average THC-A in Australia flower: America’s Marijuana Business 15.02%. • Mean of New South Wales tests: Insurance Experts 14.7%. • Total number of flower tests in Wash- ington: 5991. • Average THC-A of all Washington flower tests: 16.89%. 1-855-507-2622 • Mean of Washington tests: 17%. • Total number of flower tests at Bud- www.PremierDispensaryInsurance.com dy Boy Farm: 200. >> CONTINUED ON PAGE 74

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This chart shows data from all the test results from state-licensed producers in Washington through about December 2014. The information was based on data that was acquired through a Freedom of Information Act request. Steve Walser’s calculation shows the Washington State mean to be exactly 17% — about 2.3 percentage points higher than that of the samples from New South Wales, Australia. Walser’s test result that showed his God’s Gift strain to measure out at 41.7% THC-A was 2 points higher than the highest test from the Australian study published on PLOS One.

<< CONTINUED FROM PAGE 72 MOVING FORWARD in fertility, watering, training, genetics • Average THC-A of all Buddy Boy There have been reports of high-THC or harvest date. Even with all these sim- Farm flower: 22.71%. bud being purchased and retested, some- ilarities, we saw large variance in the 63 • Mean of Buddy Boy Farm tests 22.3%. times yielding lower results. Of course, test results we received from this strain Due to the way the results are report- no one talks about it if a sample yields the with THC-A levels ranging from 13.4% ed I have no way to separate indoor from same or a higher result. to 41.7% with an average value across all outdoor results in the state data. How- This has caused people to doubt the tests of 21.98%. ever, in our case, as well as in the case original test results. I have asked a num- We had only seven samples less than of several other large growers who gra- ber of people to produce such retests, but 18%, while 17 tested at higher than 25% ciously shared their data, I found Eastern so far, no one has been able or willing to THC-A. Washington outdoor grows to outperform do so. What I have been able to do is an- We can see from this that even under indoor operations in THC-A concentra- alyze our own test results by strain and very similar conditions the amount of tions, at least for this past year. This was plant and I have found amazing variabil- variability of some strains is quite great, an extraordinary growing year in Wash- ity even under exactly the same growing which leads one to conclude that it would ington and the results are limited, but it condition. not be at all unusual for two random sam- should put to rest the misconception that For example, we grew more than 400 ples taken from the same five-pound lot indoor grown cannabis is higher in THC plants of the God’s Gift strain outdoors to test very differently. than well-grown outdoor. Time will tell, this year. They all had the same cultural Thus my conclusion is that the utility but the opposite may prove to be true. techniques with no significant difference >> CONTINUED ON PAGE 76

74 | Marijuana Venture // April 2015 Oregon is the future of CANNABIS The Hughes Companies – Industry Knowledge and Legal Expertise

CALL TODAY (888) 878-9108 Contact us to obtain your FREE assessment from an Oregon lawyer www.TheHughesCompanies.com [email protected] << CONTINUED FROM PAGE 74 of testing another random sample from a lot to confirm the original test result is virtually nil. At the same time, it doesn’t mean that testing is of no use. My personal belief is that if every bud from a five-pound lot were tested separately, we would likely get hundreds of different results and perhaps with a wide variance. It is likely that they would tend to clus- ter around a mean just as we see in the scatter plots on Page 74. If we are really interested in giving the end user the most useful information, one idea would be to determine an average of all tests for a particular strain, or for the entire grow, then use that number for all retail cannabis sold by that grower during the year. The average could be updated each month or season as new results were averaged into the old and a new grower average was determined. While no one bud or package might conform to the average, it would give the customer a better view of the likely strength of the product they were actually going to use. In our grow, I have found that some strains seem to exhibit less variability. Some showed >> CONTINUED ON PAGE 78

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www.marijuanaventure.com | 77 << CONTINUED FROM PAGE 76 the hills. a THC-A variance of only half, or less, We can provide all the care this amaz- than that of our God’s Gift strain over ing plant can use and I believe the con- many samples. Other strains may exhibit junction of much better growing condi- less variability, but we will need a larg- tions and mass testing are opening up er number of results to say this with any our ability to understand the astounding confidence. One thing a high test result potential of the cannabis plant and how may show is what capability the partic- well suited it is to our state. ular strain has of producing THC-A. A Growing conditions here are almost higher test would confirm that at least perfect for many crops and Washington some of that lot should have a powerful State currently holds world records in effect. quality and yield for apples, potatoes, My last question was “Why haven’t we hops and wheat, along with several addi- seen such high results before with all the tional berry and fruit crop record holders. years of growing cannabis?” Given what we have seen so far, perhaps If one thinks about the level of testing we can now add cannabis to the list of being required by Washington State and world records. An aerial view of the outdoor portion of Buddy the high amount of variability we are see- The one thing I do know for sure is that Boy Farm, located in Ford, Washington. ing in the test results, I believe the very Cannabis is a marvelous plant to grow high results being seen in Washington are and that over the next number of years, a function of two things. would be expected that with such a high she has many secrets yet to reveal. It’s an No one has ever tested on the scale degree of testing, a wider range of results amazing time to be a grower so I want to Washington requires. There have now would be seen. thank everybody who voted in favor of been more than 6,000 tests performed so The second factor is that this is the I-502 for giving us this opportunity. far in Washington State — an unprece- first time growers have been able to be dented number in scope and granularity. completely open about their operations. Testing in Washington State certainly ex- No longer are outdoor grows forced to Steve Walser is the owner and head grower ceeds that done in any other state, giv- operate in marginal areas. We can now of Buddy Boy Farm, a state-licensed producing us a level of data not seen before. It grow in the valleys rather than hiding in er/processor in Eastern Washington.

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78 | Marijuana Venture // April 2015

LEGAL PAGES

the “love letter” of Valentine’s Day 2014, permitting banks to work with cannabis Anti-cannabis activists businesses, or the defunding of the DEA late last year, allowing four states to enact recreational laws. The federal government allege RICO violations is aware that the Controlled Substances Act needs to be changed to reschedule Will Colorado-based recreational stores prevail in lawsuit? marijuana, or remove it from the act al- By Michele Brooke together. n Feb. 19, Phil- scene matter, or dealing in a controlled I expect to see many law firms and in- Olis and Michael substance or listed chemical (as defined terested groups filing friend-of-the-court Reilly and Safe Streets in section 102 of the Controlled Substanc- briefs if this matter is appealed at some Alliance filed two law- es Act), which is chargeable under State point — which seems likely. Friend-of- suits in federal court. law…” the-court briefs (also known by their The first lawsuit was The main complaint of the plaintiff in fancy legal term, amici curiae) are where primarily against recre- this case is primarily that the defendants someone, usually a group that is interested ational marijuana busi- are engaged in illegal drug trade in viola- in the outcome of the case, but is not a nesses in Colorado, as well as the people tion of the Controlled Substances Act. plaintiff or defendant, offers information who allowed the businesses to exist in the In addition, the complaints include all or a legal opinion that is relevant, but has state; the second lawsuit was against a ho- the same unsubstantiated rhetoric we have not been requested by any of the parties tel called New Vision Hotels Two, which come to expect from those who object to to assist the court. These briefs attempt apparently runs a hotel tailoring services cannabis use: devaluation of property val- to ensure that the broad legal effects of a to recreational marijuana tourists. Rec- ues, alleged nuisance claims, crime rates, court decision will not depend solely on reational marijuana sales were targeted, the smell, marijuana shop owners being the parties directly involved in the case. but not the medical marijuana businesses, bad neighbors, etc. For example, the NORML lawyers might because medical marijuana laws do not It is going to be a rough ride for the de- put together a friend-of-the-court brief to conflict with federal law where there is fendants named in this lawsuit. It is very assist the court to see their legal reasoning an exception for medical relief under state serious. The potential liability, potential on an issue. laws. treble (triple) damages, awarding of at- It may get all the way to the Supreme The alleged legal violations are that torney fees and/or loss of business could Court, which could be a good thing. There since marijuana is a Schedule I drug un- be devastating. But the plaintiffs will have may be enough of a push to prevail there. der the Controlled Substances Act of to prove the elements of each alleged of- That could take years. However, in the 1970, and since federal law trumps state fense. meantime, a lot of money is being gener- laws, the recreational marijuana business- Here, I have doubts any jury will find ated in anticipation of recreational mari- es are illegal as a matter of law. The other these good people involved in organized juana, not only in Colorado, but all over alleged violation relates to a crime under crime or money laundering as it is tradi- the United States. Businesses and serious the Racketeer Influenced and Criminal tionally known. This is going to be one entrepreneurs are positioning themselves Organizations Act (commonly known as of those uphill battles we face as a nation to grab their share of the pie, and this case RICO). when the law and the trends of society will not get in their way. Traditionally, racketeering crimes in- are in deep conflict. We are seeing similar I do not anticipate the momentum will volve white collar crime or crimes by conflict, for example, right now with im- stop because of this case. Some might notorious gangsters or members of orga- migration laws. pull back, but I expect they will be the nized crime. Racketeering is usually asso- Do we have a large number of illegal exception, as millions of Americans are ciated with illegal business activity such immigrants in our country who inadver- interested in the continued success of the as illicit gambling rings, loan sharking or tently or intentionally stayed long enough marijuana industry. transportation of stolen goods. In the day, to become engrained in our societies (and In the meantime, whatever we can do gangsters who profited from alcohol pro- becoming our friends and neighbors)? to support our comrades in Colorado, we hibition by boot-legging would have been Are they in violation of federal laws? Yes. should do it. Will they prevail? I am cau- guilty of racketeering activity. Should we deport them all? tiously optimistic. The RICO criminal statute (Title 18 Issues like these make us scratch our U.S.C.A. §1961) describes the extensive heads and wonder why timely progress in crimes included in the full definition of the federal government is such a rarity. Michele Brooke is an attorney in California who practices civil litigation and civil canna- racketeering, but starts by defining rack- The fact is that the federal government bis law (www.brookelawgroup). She is a mem- eteering as “any act or threat involving has permitted a violation of federal laws ber of Americans For Safe Access, NORML murder, kidnapping, gambling, arson, in both instances. The federal government and the American Herbal Products Associa- robbery, bribery, extortion, dealing in ob- has even made accommodations, such as tion, Cannabis Committee.

80 | Marijuana Venture // April 2015

LEGAL PAGES

person or business you paid. These re- portable expenditures include payments Determining independent for services performed, as well as any associated materials provided. contractors from employees PAYMENT EXCEPTIONS Certain payments you make in the When do you need to file a Form 1099 for taxes? course of your trade or business are not By Andrew C. DeWeese & Calvin E. Eib required to be reported to the IRS. These henever your portant to consider the entire relationship, include: Wbusiness con- analyze the degree or extent of your right • Payments for merchandise (when no tracts with another to direct and control, and to document service is included in the purchase; but business or individual, three important factors. when services and merchandise are pur- it’s worth considering • Behavioral: Your company’s control chased together, err on the side of caution how the IRS views the or right to control what the worker does and report); arrangement and your and how the worker does his or her job. Payments made to a corporation (in- reporting requirements • Financial: Your company’s control cluding an LLC that is treated as a C or associated with mak- or right to control business aspects of the S corporation); ing payments to that worker’s job, such as how the worker is • Payments made using a credit card or business or individual. paid, whether expenses are reimbursed, payment card and certain other types of The IRS considers who provides tools/supplies, etc. payments, including third-party network an independent con- • Type of Relationship: Factors in- transactions (which must be reported on tractor to be self-em- cluding a written contract or employee Form 1099-K by the payment settlement ployed and subject benefits, such as pension plan, insurance, entity); to self-employment vacation pay, etc., whether the relation- • Payments for rent if it is paid to a real taxes, whereas an employee is subject ship is continual and whether the work estate agent. to withholding and reporting for income performed a key aspect of your business. If you expect to pay a business more taxes, Social Security and Medicare. For example, assume a medical can- than $600 then you should have them fill Thus, even though you may not have an nabis dispensary has an agreement with out a Form W-9, which will provide you employer-employee relationship with a farmer to supply certain types of prod- with their Tax ID Number, business struc- your favorite cannabis farmer, you may uct, in certain amounts and of a particular ture (sole proprietor, C corporation, etc.) still have an IRS reporting obligation for quality. The cannabis farmer determines and their address. payments you make to that business. when and where to do the growing, what farming tools and equipment will be DEADLINES AND PENALTIES INDEPENDENT CONTRACTORS used, the number of workers to hire to Form 1099 must be filed by the end of Individuals who are in an independent assist with the work, which worker will February with the IRS. If the form is filed trade, business or profession in which perform specific tasks, and generally relate, incorrectly (such as a missing or in- they offer their services to the general tains the right to determine the details of correct tax identification number for the public are generally independent contrac- the farming work in order to supply the person/company you paid) or not filed at tors. If your dispensary business hires or cannabis. all, then you may be subject to penalties contracts with a cannabis farmer to grow Given these facts, it is likely that the and/or an audit of your reporting practic- and provide product, then you need deter- cannabis farmer is an independent con- es. mine specifically the nature of that busi- tractor. But it is important to look at all If the 1099 is late-filed between March ness-to-business relationship for federal the facts since there isn’t a set number of 1 and March 31, the penalty is $30 for tax reporting purposes. factors that makes the cannabis farmer an each failure, up to a maximum penalty of An individual is an independent con- employee or an independent contractor. $250,000 per year. This penalty is capped tractor if you have the right to control or The keys are to look at the entire relation- at an annual total of $75,000 for “small direct only the result of the work and not ship, consider the degree or extent of the businesses,” which are defined as a busi- how that result will be obtained. However, right to direct and control, and to docu- nesses having average annual gross re- an individual will usually be considered ment each of the factors used in coming ceipts of $5 million or less over the three an employee if you have the legal right to up with your determination. most recent tax years (or for the period control the details of how the services are If you made payments totaling $600 or the business was in existence, if shorter). performed — that is, not just what will be more to an independent contractor during If the 1099 is late-filed between April done, but how it will be done. the year in the course of your trade or 1 and July 31, then the penalty is $60 per This determination is based on all the business then you must report those pay- failure (maximum penalty $500,000 per relevant facts and circumstances. It’s im- ments to the IRS, and send a copy to the >> CONTINUED ON PAGE 84

82 | Marijuana Venture // April 2015

<< CONTINUED FROM PAGE 82 year or $200,000 for small businesses). If the 1099 is late filed after Aug. 1, then the penalty is $100 per failure penalty (maximum penalty $1.5 million per year or $500,000 for a small business). If the 1099 is not filed at all, such that the IRS determines it was “intentionally disregarded,” then the penalty is $250 per failure (with an IRS audit likely immi- nent).

1099 RECIPIENTS Anyone who receives a 1099 should take care to include that information on their tax return. The IRS matches the 1099 it received from the payor with the item that should appear on the payee/independent contractor’s tax return via the payee’s tax identification number. In order to help ensure that businesses receive 1099s and any other IRS-related correspondence, beginning Jan. 1, 2014, the IRS began requiring that any entity with an employer identification number must report to the IRS a change to its business address, business location or “responsible party” (such as its principle officer or managing partner, etc.) via Form 8822-B.

CONCLUSION Whenever you contract out with another business or individual, it’s worth considering the nature of that relationship, how the IRS views the arrangement, and to set up the proper IRS reporting for payments that you will make to that business or individual. It will save you time in the long run and help avoid a highly preventable IRS audit of your reporting practices.

Andrew DeWeese and Calvin Eib are partners in the Oregon Cannabis Law Group in Portland, Oregon. DeWeese handles cases in state and federal court, and represents and advises cannabis business clients on state law compliance issues and federal tax planning and disputes. Eib is licensed to practice law in Oregon and Illinois. He has a master of laws degree in taxation from the University of Miami and more than 19 years of experience practicing in the areas of state and federal tax matters and business regulation, including representing and advising corporate clients on tax compliance and litigation.

84 | Marijuana Venture // April 2015 PERFECT, READY-TO-GO OUTDOOR OPERATION

For sale: Ownership of the business holding two Tier 3 producer/processor applications with plans and preliminary approval from the Washington State Liquor Control Board. Ready for build-out and final inspection. Includes 300 acres in sunny Okanogan County. The property is already fenced and includes a 1.5-acre section with 8-foot security fencing. The land is at 2,800 feet elevation and has plenty of water, southern exposure, nearby power and privacy. It is a perfect location for an outdoor grow. Location is west of Tonasket, Washington, and well removed from other outdoor grows (minimizing the risk of cross pollination and pathogens).

$500,000 for everything. Contact: [email protected] LEGAL PAGES Cities, counties outline attack plan on Measure 91 Local jurisdictions want more authority over marijuana laws By Matt Goldberg n an eight-page legal THE CITIES AND Imemo, the League of Oregon Cities and COUNTIES ARGUE the Association of Oregon Counties pre- THAT MEASURE viewed the litigation strategy they will use 91’S TEXT IS NOT to seek greater control for local jurisdictions under Oregon’s EVIDENCE OF A recreational marijuana law if the Legis- lature does not write such additional con- SPECIFIC ENOUGH trols into the law this session. INTENT TO As passed, and as commonly understood, Oregon’s Measure 91 only allows PRECLUDE LOCAL marijuana to be taxed at the state level and only allows counties and cities to ban GOVERNMENTS marijuana businesses outright through a local option submitted to the will of the FROM REGULATING voters. However, the lawyers for Oregon’s cit- MARIJUANA... ies and counties argue that the actual text coming rules from the Oregon Liquor of the initiative, especially when viewed Control Commission not as a regulatory in light of cases addressing similar issues standard across local jurisdictions but as under state liquor laws, permits local a regulatory floor on which local jurisdic- governments to tax, regulate — and even tions can establish their own unique rules ban — recreational marijuana businesses. and requirements. The cities and counties argue that Mea- In light of this shot across the bow by sure 91’s text is not evidence of a specific Oregon’s cities and counties, it is likely enough intent to preclude local govern- that the Legislature will take some action ments from regulating marijuana beyond by way of amending the statute to allow the requirements of the measure. Because for some greater degree of local control. Measure 91 does not state, for example, While doing so would seem to go that a local election is the “only” way for against the will of the voters, the Legis- a city or county to opt out of recreational lature faces a Catch 22: either cave to the marijuana, the cities and counties argue pressure now and amend the law to give that they retain local authority to ban local governments more control, or move businesses. forward with the law as written, knowing This argument is somewhat disingenu- that the cities and counties will tie the ous, though. The cities and counties ref- new law up in litigation for much of its erenced a footnote statement in the vot- early life. ers’ pamphlet that a local election was, in fact, the “only” way for a city or county to opt out. Matt Goldberg advises cannabis businesses If successful, the argument is also dan- throughout the Pacific Northwest at Cannabis gerous because it could open the door to a Lawyers NW, LLC (www.cannabislawyersnw. possible multiplicity of rules and regula- com). He can be found on Twitter at @Can- tions on the local level, treating the forth- nabis_Lawyer.

86 | Marijuana Venture // April 2015 Certified I-502 Testing Regulatory Consulting Product Development Contract Research Traceability Counseling

Process Improvement Improvement Process More Than Just A “Testing Lab” I-502 Compliant Labeling Strain Authentication

Erby-‐[email protected] Call Us: 855.734.6640 www.TheWercShop.com LEGAL PAGES

dia, websites and any press releases are going to be parts of your application, ei- Path to success involves ther directly or indirectly. In some states, it is absolutely imperative that you do not undertake black market cannabis activities navigating legal obstacles prior to licensing. This could be a surefire way to disqualify you and may also make To be seen as a valid, legitimate industry, treat it as such you the subject of a criminal investigation. By Jana Weltzin If you want to be recognized and treated he cannabis in- adversities which tend to reveal them- as a valid, legitimate business, you have to Tdustry continues selves later in the process. form, operate and manage a valid, legiti- to emerge and evolve, It’s also important for cannabis entrepre- mate business. proving it’s not just a neurs to recognize that a great deal of misin- Although critics of the cannabis indus- passing fad, but a val- formation, myths and negative stereotypes try point to a long list of illogical fears and id and legitimate eco- continue to exist and plague the cannabis inaccurate statistics to support their posi- nomic force. However, industry. As such, in addition to navigating tions, merely shouting back at them will many of its key players the various legal and business issues and never sway their beliefs. We first have to struggle to comprehend the extensive in- complexities, cannabis entrepreneurs must establish, consistently, that not only will we dustry rules and requirements, which are also be dedicated to communicating with follow the rules and regulations imposed further complicated by the fact that those their local government and community, on us, but that we want rules and regula- regulations vary greatly on a state-by-state providing opportunities for education, in- tions that will legitimize the industry. This basis. formation and outreach. Those who have industry is new and evolving, so we don’t Adding increased confusion to the jour- found success in the industry achieved it know definitively what regulations will ney is the systematic process of applying by positive interaction with neighbors, law stand the test of time. However, to protect for and obtaining the proper licenses, per- enforcement and local government, break- and ensure the legitimacy and longevity of mits and zoning approvals. Through my ing down those preconceived notions and the industry, we must be a part of the pro- experience as a lawyer representing indi- building support and trust. cess of establishing policy and rules. viduals and entities seeking to enter the Cannabis entrepreneurs must also recog- We must be taken seriously and invited cannabis industry in Alaska and Arizona, nize there are significant regulatory hurdles to the table when the time to talk presents I have an understanding and appreciation which must be addressed, such as compli- itself. The invitation will only come to for the steps necessary to overcome the ance, business licensing, tax matters and those who have taken the time to connect routine roadblocks which often mean the other necessary permits. Each process may with their neighbors, their zoning board difference between success and failure. require interaction and compliance with members, fire and police departments, etc. Understanding the nuances of the li- various local and state regulatory agen- To be taken seriously, you cannot merely censing application process, as well as cies, each of whom have their own set of remain an outsider while navigating an the zoning laws, are key concepts that any standards. The biggest mistake cannabis invasive licensing process. You must act cannabis entrepreneur must grasp. The ad- entrepreneurs often make is attempting to with purpose, rebrand when necessary, and ministrative and licensing process can be navigate all these arenas on their own. In find the right representation to guide you frustrating, costly and competitive. For many of these areas of the law, you are not through the process. lawyers advising their clients, it means awarded any second chances. Real change for the industry will come having the knowledge, experience and Regardless of whether you’re facing a from those who establish themselves as the ability to advise with regards to zoning and meritorious application process or a lot- model applicants, who then become indus- land use requirements, business/corporate tery system, it is imperative that you are try leaders, and in time, gain the invaluable structure, finance, administrative law and able and willing to expend the necessary respect and trust from authorities, making procedure, as well as the ever-changing financial resources and time to ensure you those business owners a permanent fixture regulations of the cannabis industry (pack- have a quality application that doesn’t just in this multi-million dollar market. aging, labeling, testing, potency, dosing, meet the requirements of the system, but security, transportation, record keeping, exceeds them. Like any other emerging in- Jana Weltzin is a member of Rose Law fire and safety codes, to name just a few). dustry, as time continues, those who made Group’s medical marijuana and zoning/land Therefore, serious entrepreneurs must the necessary commitments (time, money, use departments. She was born and raised in be aware of these complexities, liabilities research, etc.) are the ones who will have Fairbanks, Alaska and advises clients in the cannabis industry in Arizona and Alaska. Rose and potential pitfalls. They must also form the greatest chance at long-term success. Law Group assists its clients with business relationships with knowledgeable profes- Therefore, to look good from the get-go, structure, finance and contractual structure, sionals who have the ability to navigate the it’s important to make sure that you don’t compliance with applicable state and local various mine fields, provide the necessary jump the gun. laws, zoning approval and use permits, site se- advice, as well as mitigate the unknown You must assume that your social me- lection, and product regulations.

88 | Marijuana Venture // April 2015 NOT JUST POT 46 years experience solving a wide variety of legal problems in administrative, state and federal courts, including appeals.

LAW OFFICE OF JEFFREY STEINBORN 206-622-5117 [email protected] www.steinbornlaw.com CLEAR THE AIR

In some areas, odors are regulated by the same agencies that oversee pollution, like the smoke coming from this sawmill in a 1941 photo from the Library of Congress archives.

90 | Marijuana Venture // April 2015 Cannabis odors can be considered pollution By Christen McCurdy he skunky odor of marijuana might Washington State specifically identifies PEOPLE SAY WHY DO Tsmell like money and good times to smell as an air contaminant in the Wash- those in the cannabis industry, but there ington State Clean Air Act, Cenci said. are some people that consider it pollution. Mark Salley, a spokesman for the Col- I NEED A PERMIT? Since 1968, Washington State has been orado Department of Public Health and I’M NOT MAKING requiring businesses that may create air Environment, said agricultural activities pollution — including the emission of — including cannabis grow operations POLLUTION, I’M JUST strong odors — to get air quality permits. — are exempt from the state’s odor reg- “People say why do I need a permit? ulations. He said it’s “highly unlikely” a GROWING A PLANT. I’m not making pollution, I’m just grow- retail operation would produce enough ing a plant,” said Carole Cenci, senior odor to be considered a nuisance, though There are 10 different clean air agen- engineer with the Puget Sound Clean Air some municipalities may have more species that handle different jurisdictions Agency, which issues air quality permits cific requirements about odor control. He throughout Washington (see the sidebar for businesses in King, Snohomish, Pierce added that Colorado’s laws pertaining on Page 92). and Kitsap counties. “The reality is, this to odor control don’t make a value judg- “If you’re going to grow or process type of product does create odor, and not ment about what types of odors can be marijuana, you need an air quality per- everybody thinks it smells good.” considered offensive. >> CONTINUED ON PAGE 92

www.marijuanaventure.com | 91 << CONTINUED FROM PAGE 91 mit, before you buy equipment, before you AIR POLLUTION JURISDICTIONS Department of Ecology even design your system,” Cenci said. Central Regional Office Once a business has filed an initial per- Olympic Region Clean Air Agency Chelan, Douglas, Kittitas, Klickitat, mit application, Cenci said, they’ll hear Clallam, Grays, Harbor, Jefferson, Okanogan counties back from the agency within a couple of Mason, Pacific, Thurston counties Phone: 509-575-2490 weeks. Depending on the operation’s size Phone: 360-539-7610 and specifics, it can take anywhere from a Website: www.orcaa.org Yakima Regional Clean Air Agency few weeks to several months for PSCAA Yakima County Department of Ecology to grant full approval for the permit appli- Phone: 509-574-1410 cation. Northwest Regional Office Website: www.yakimacleanair.org San Juan County Cenci said about 10 growing opera- Department of Ecology tions in her jurisdiction have applied for Phone: 425-649-7000 Eastern Regional Office air quality permits. The first applications Northwest Clean Air Agency Adams, Asotin, Columbia, Ferry, began rolling in last summer. PSCAA has Island, Skagit, Whatcom counties Franklin, Garfield, Grant, Lincoln, already approved most, although one large Phone: 360-428-1620 Pend Oreille, Stevens, Walla Walla, operation’s permit is still pending, Cenci Website: www.nwcleanair.org Whitman counties said. Phone: 509-329-3400 “We have contacted all of the growers Puget Sound Clean Air Agency on the Liquor Control Board approved list King, Kitsap, Pierce, Snohomish counties Spokane Regional Clean Air Agency or the pending list (in the Puget Sound Phone: 206-343-8800 Spokane County Area). There are permits that are not is- Website: www.pscleanair.org Phone: 509-477-4727 sued but are pending. We haven’t heard Website: www.spokanecleanair.org from a whole lot of them, but we want to Southwest Clean Air Agency continue to get the word out,” Cenci said. Clark, Cowlitz, Lewis, Skamania, Benton Clean Air Agency Washington State’s initial filing fee for Wahkiakum counties Benton County a permit is $1,150. As PSCAA processes Phone: 360-574-3058 Phone: 509-783-6198 applications, there may be additional fees Website: www.swcleanair.org Website: www.bcaa.net that so far have ranged from $1,200 to $6,000. Growers need to pay those fees in Vaportek, a Wisconsin-based compa- ity impacts,” Van Slyke said. full before they can get permits. ny that manufactures a wide range of The agency will investigate operations Vendors who specialize in clean-air fil- odor-eliminating products, works with once an air quality complaint has been tration have worked closely with the can- clients in real estate, fire and flood resto- made. So far, it has issued 10 tickets to nabis industry to help mitigate odor for ration, health care and hospice, as well as grow operations for operating without a several years at grow operations and dis- cannabis growers. It markets a variety of clean air permit. But the agency would pensaries nationwide, as well as in Can- standalone products to grow operations, rather work with growers before reaching ada. making different recommendations based that point, since investigating complaints “We’ve been around for about 30 years on the size of the facility. Vaportek’s media is time- and labor-intensive, Van Slyke and the marijuana business is new to us,” coordinator, Sunny Christensen-Schnei- said. The first ticket is a warning, but said Robert Goodfellow, vice president of der, said customers can buy directly growers who fail to respond may face fi- marketing at Dynamic Air Quality Solu- through Vaportek’s website or through nancial penalties, he said. tions in Arkansas. While the $10 million stores and vendors that target small hydro- “We have several tools available to as- company features an array of clients in- ponics growers. sist with getting businesses into compli- cluding hospitals, big airports and schools, “How Vaportek is different from the ance, including written warnings, notices it’s never busier at a trade show than when other guys is we use essential oils,” Chris- of violation and civil penalties,” said Del- it sets up a booth at a cannabis-related tensen-Schneider said. Vaportek’s filters la Kostelnik Juarez, communications spe- event. wick odors out of the air, and also come at cialist for Puget Sound Clean Air Agen- Most of Dynamic’s clients need to filter a lower price point than carbon filter sys- cy. “If a business receives one of these pollutants in the air surrounding a facility tems, she said. enforcement actions, they have several — such as jet fuel at airports or lingering Steve Van Slyke, manager of compli- opportunities to discuss their specific cir- exhaust from helipads at hospitals — but ance for Puget Sound Clean Air Agency, cumstances to us, and we will review any also works with businesses that want to emphasized the need for growers to work information they provide.” filter indoor odors such as cigarette smoke. closely with officials early in the planning Cenci said most of the growers she con- Goodfellow said most grow operations stages to avoid complaints and penalties tacts are just hearing about the agency for in Dynamic’s client base use packaged for non-compliance. the first time and are unfamiliar with the rooftop units that detect carbon dioxide, as “The goal is to be in compliance with regulations. She and her colleagues at- well as volatile organic compounds, and the appropriate air quality regulations so tempt to head off problems early, and en- use a carbon matrix system to filter con- there is clean air and residents are not bur- courage growers to contact PSCAA before taminants, including mold spores. dened by nuisance odors or other air qual- the agency contacts them.

92 | Marijuana Venture // April 2015

GUEST COLUMN THERE ARE MANY Hemp legislation hit by LEGAL ARGUMENTS maddening roadblocks TO BE MADE Political gamesmanship stalls Washington’s momentum THAT INDUSTRIAL By Joy Beckerman HEMP HAS BEEN, ow excited I was about four feet apart for its medicine or nar- AT MINIMUM, DE Hto write an arti- cotic-rich leaves and buds. Industrial hemp cle this month about is a low-resin crop generally planted about FACTO LEGALIZED the basics of industrial four inches apart for its versatile stalk and hemp farming. After seed. There are many legal arguments to HERE AND THAT all, we’ve been con- be made that industrial hemp has been, at fident in Washington minimum, de facto legalized here and that THIS HULLABALLOO that the state Legisla- this hullaballoo is entirely unnecessary and ture would pass an industrial hemp bill this ridiculous. The Washington chapter of the IS ENTIRELY session; therefore, we must be prepared for ACLU, the Hemp Industries Association, the great liberation of the world’s most sus- and multiple lawyers and professionals UNNECESSARY AND tainable, versatile and valuable seed. Well, across Washington share the formal legal just as I was sitting down to write a cul- opinion that industrial hemp cultivation is RIDICULOUS. tivation primer, a wrench was thrown into already legal. The argument is based on agricultural commodity other than what the wheel of hemp legislation momentum. language from both Washington State and they been shown over and over again by As this issue goes to print, two competing the federal government. common sense proponents of this crop. The bills in the Legislature are being paralyzed Washington’s Uniform Controlled Sub- United States is the largest importer of in- by the Washington State Department of stances Act specifically defines marijuana dustrial hemp materials and products in the Agriculture, political gamesmanship and, as all parts of the cannabis plant “with a world. potentially, special interests. THC concentration greater than 0.3 per- The Congressional Research Service’s Currently, the state Attorney General’s cent…” and the federal government has report, “Hemp as an Agricultural Commod- opinion is that Washington has only legal- defined industrial hemp as all parts of the ity,” states that U.S. retail sales of hemp- ized marijuana, and that industrial hemp cannabis plant “with a (THC) concentra- based products in 2013 totaled more than cultivation remains unlawful because the tion of not more than 0.3 percent.” $580 million. Of that, the value of hemp- Legislature has never passed laws specific Yet, the state Attorney General’s Office based food, supplements and body care to industrial hemp. maintains that industrial hemp cultivation sales (all of which are derived from the The state Department of Agriculture par- is unlawful in Washington. Here we sit. hemp seed) totaled $184 million. It also re- rots this opinion in its consistent refusals Despite unanimous support to pass hemp ports that more than 25,000 products can be to issue research permits to potential hemp legislation in both the House and Senate made from various parts of the hemp plant. farmers, under Section 7606 of the feder- this session until nearly the last week in The U.S. is importing 90% of the hemp al Farm Bill of 2014. A common response February, the Department of Agriculture is seed oil and hemp seed for human con- from the state Department of Agriculture now complaining that the state can’t afford sumption being harvested in Canada, due is: “According to our conversations with to administer a hemp farming program, to hemp’s unique and nutritional profile. the State Attorney General’s Office, culti- and the House Appropriations Committee For heaven’s sake, the largest employ- vation of industrial hemp has not been le- is stalling a vote on Rep. Matt Shea’s HB er in the town of Blaine, Washington is galized in Washington State.” 1552. Meanwhile, the House Commerce Nature’s Path, which produces the largest These would-be hemp farmers are sur- & Gaming Committee is stalling a vote on hemp seed food line in the entire nation — prised and disappointed to learn that Sec- Sen. Brian Hatfield’s SB 5012 (granted, waffles, cereal, granola bars, etc. — every tion 7606 of the Farm Bill only pertains to five of those nine committee members are single one of which is produced with the states where industrial hemp is legal. Ap- co-sponsors of Rep. Shea’s bill). prized, nutritious hemp seed grown in Can- parently, only marijuana can be lawfully Now the Appropriations Committee and ada. grown here in Washington. the Department of Agriculture are asking Upon my last inventory of the PCC Nat- To set the proper framework for describ- for economic data that doesn’t exist (i.e. ural Markets in Edmonds, Washington, the ing this conundrum, it’s first best to ensure current U.S. production costs and profit store carried no less than 96 hemp-based understanding of the distinct differences margins) in order to prove hemp’s worthi- food, supplement and body care products between the two Cannabis sativa species, ness as a Washington crop. — all sourced from Canada. And no special marijuana (the drug type) and industrial I’m not sure what more any department processing or seed oil pressing equipment hemp (the oilseed and fiber type). Mari- of agriculture or Legislature needs to know is necessary to harvest and press hemp juana is a high-resin crop generally planted about the value of industrial hemp as an >> CONTINUED ON PAGE 97

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<< CONTINUED FROM PAGE 94 seeds. Our Washington farmers can harvest hemp seeds with careful use of modern day combines, and hemp seed’s valuable oil can be pressed from the same presses used for canola. Even the roots of the hemp plant can garner $200 an acre from the body care market (industrial hemp roots contain valuable, non-cannabinoid healing properties located nowhere else in the plant). Remaining optimistic that somehow common sense will rein in the Legisla- ture this session, let’s examine the differences between the two competing bills. Sen. Hatfield’s bill, SB 5012, may seem a Utopian dream on its face, in that it is curi- ously brief and includes no regulation. But the reality of SB 5012 is that it leaves all rule-making in the hands of the Department of Agriculture, which will almost certainly over-regulate this safe, non-drug crop and over-charge our farmers. Rep. Shea’s bill, HB 1552, deliberately includes and excludes very specific items that are necessary for Washington farmers the two current hemp bills. It’s more critical Joy Beckerman is the president of Hemp and a successful hemp industry. The com- than ever to contact your Legislators and let Ace International and president of the Wash- parison chart provided here demonstrates them know that you insist on the passage of ington chapter of the Hemp Industries Asso- the five largest points of difference between HB 1552 in this current session. ciation.

www.marijuanaventure.com | 97 GUEST COLUMN Redefining cannabis stereotypes Green-Theory manager Tera Martin is one of the people changing the stigma of marijuana By Vicki Christopherson omentum to le- Mgalize cannabis is building across the country. Washington, D.C., our nation’s cap- ital, is one of the latest to engage in building the foundation for a safe environment where consumers and cannabis businesses enjoy the mutual benefits of a legal marketplace. Washington State is well on its way. Fol- lowing the recent passage of the Cannabis Patient Protection Act from the state Sen- ate to the House Health Care and Wellness Committee, we are one step closer to ensur- ing safe, quality-controlled products for all consumers in Washington. By the time you read these words, the legislation may have moved further within the legislative process and the system envisaged by Initiative 502 will be within reach in the form of a wholly-regulated system benefiting both legitimate medical patients and licensed businesses. For now, there is still work to be done on the policy front and in redefining cannabis both as a product and as a market for the uninitiated public. For most people — and maybe even some readers of Marijuana Venture — cannabis is represented by the green, five-leaf plant image that can be found on buttons, stickers, T-shirts and endless video clips featuring clouds of smoke at festivals. There are memorable characters in popular culture who serve as de facto representa- tives of marijuana, ranging from Cheech and Chong to Jeff Spicoli from Fast Times at Ridgemont High. But for most of us in the legal, regulated market, the caricature couldn’t be further from reality. That’s why we came together to form the Washington CannaBusiness Associa- tion (WACA), the only organization of its kind advocating for state-licensed producers, processors and retailers of cannabis. In this group are professionals like Rob Tera Martin walks the pink carpet and Diane, who have put their life savings at her Pink Gene gala. into a mom and pop store, and innovators

98 | Marijuana Venture // April 2015 GUEST COLUMN who are tirelessly working toward medical products to stave off the suffering from an illness or injury. Tera Martin, manager of the Green-Theory retail store in Bellevue, is one such innovator. A former beauty pageant winner, Mar- tin is a far cry from the widely-accepted stereotype of a cannabis user. As a breast cancer survivor and advocate who developed Stage 3 ductal carcinoma at age 28, her subsequent use of cannabis to alleviate the effects of her treatment underscored the importance of the safety and availability of the products she used. While Martin’s professional background is in hospitality and event management, her personal experience led to the founding of the Pink Gene Foundation. The Pink Gene Foundation strives to help young women become proactive in the fight against breast cancer by -educat ing, providing resources and offering assistance. Specifically, Martin’s foundation aims to create funds that help build aware- ness for women at high risk to support ge- netic testing, prevention and a new project with the Fred Hutchinson Cancer Research Center, called the Pink Gene Screen. Getting beyond the frightening narrative about marijuana established by movies like Reefer Madness is a significant challenge for legalizing cannabis across the country. The sentiment that all marijuana users are “stoners” who sit in murky vans, or dan- gerous criminals running drug syndicates exemplifies the need to redefine the- indi viduals and businesses at the core of the legalization movement. While Tera Martin is one of a kind, cannabis entrepreneurs and others in the legal marketplace who share her passion and professionalism represent concerned citizens, community members, loving parents and good neighbors. They fit the stereotype of non-users far more than the exaggerat- ed misrepresentation of those portrayed We want to see your biggest in popular culture. Washington State has already turned the page on the cannabis legend and begun to write a new story. and most beautiful plants. Working together with policymakers, community leaders, elected officials and people Marijuana Venture will be holding a contest throughout like you, we look forward to writing a story the year for the best marijuana-related photos. For more that works for Washington. information, see the May issue of the magazine, or email Editor@Marijuana Venture.com. Vicki Christophersen is the executive director of the Washington CannaBusiness Association.

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Bulk loads shipped weekly throughout Washington, Oregon and Colorado 970-281-7907 MillerSoilsLLC.com [email protected] GUEST COLUMN Changing growing patterns will impact cannabis prices Pierce County retailer ignores moratorium, pushes forward By Jerry Whiting he way cannabis is grown has a direct SWITCHING TO Tbearing on its price. Big, beautiful buds command higher prices, at least in the recreational market, and visual appeal has a A SEA OF GREEN direct bearing on pricing. Knowing this, SETUP RESULTS IN growers prune and trim accordingly. An emerging trend among growers is A DRASTIC CHANGE about to alter the way cannabis is priced and sold in what could be a very profound IN THE LEAF-TO- manner. Until recently, the vast majority of growers kept their plants in veg for weeks FLOWER RATIO. and months at a time. The goal was to grow This works well for those growing Grade A the largest plants possible — the bigger the flower for end users to smoke. Those who better. anticipate using the lower-priced popcorn, Weed grown like this produces finished trim and leaf material not only find them- materials that come in three grades: Grade selves competing with well-funded con- A, the trimmed flower; Grade B, the popcorn centrate processors, but there’s simply less (small buds) and trim that produces Grade A non-flower material available. The only up- materials; and Grade C, the leaves and rest side is that what little leaf material is proof the plant that are left after A and B. duced by SoG growers is trichome-covered, Indoor cultivation had been done this way cannabinoid and terpene rich and hence for years. The introduction of concentrates quite valuable. There just isn’t much of it. and the Sea of Green (SoG) technique will Is this a Chicken Little, the sky is falling, fundamentally change the way marijuana is Doomsday scenario? No. The market will priced and sold. Concentrates like BHO and correct itself. Some will bite the bullet and

CO2 oil command higher prices than flower, pay more for what they need, and others which means concentrate processors can af- will adjust recipes and workflows, and cre- ford to pay more for cannabis they use. The ate new products. Some growers will take a flipside is that those making edibles like different approach and grow cannabis as a candy and baked goods get squeezed be- bulk agricultural commodity as opposed to cause their products have lower retail prices a hand-tended designer herb. Perhaps their with thinner margins. harvests will be one grade: flower, trim, leaf Even more profound is the shift from and all. Ugly, but functional. Field corn, not growing large plants with lots of extra veg- sweet corn; industrial, not consumer. etative material to utilizing very short veg However changing growing styles man- times with only one main flower. While ifest in the marketplace, cannabis is a rap- harvests are quicker and yield more flower idly-evolving industry and SoG is but one over the long haul, what’s missing is all the of many changes that will shape this new extra popcorn, trim and shake that is a by- industry. product of lengthy growth cycles. The SoG proponents chuckle that the long-veg grow- Jerry Whiting is the founder of LeBlanc CNE, ers blow right past the point of diminishing growers and brokers of medical cannabis and returns, blinded by the sheer size of their vintage heirloom strains. LeBlanc has an extensive collection of CBD-rich strains, including a plants and blind to how much of the green seed bank and live plants. LeBlanc sponsors a has little market value. hemp breeding project, reseaches the relation- Switching to a Sea of Green setup results ship between cannabis chemistry and genetics, in a drastic change in the leaf-to-flower ratio. and processes whole plant preparations.

www.marijuanaventure.com | 101 GUEST COLUMN

Colette Thomas poses with The Gallery owners Mike Henery (left) and Tedd Wetherbee (right).

and many processors are competing for shelf space. The Gallery is surrounded by The Gallery opens doors, more than a hundred medical dispensaries in Pierce County, where single grams are sold for $10. Consumers can purchase sin- despite county warnings gle grams at The Gallery for $14 to $24. Soon Wetherbee hopes to offer single Pierce County retailer ignores moratorium, pushes forward grams and pre-rolls for $10. This will al- By Colette Thomas low them to go head-to-head with dispen- hen Tedd Wetherbee and Mike Hen- 3 Wetherbee and Henery were verbally saries and the black market. Wery opened The Gallery in Parkland, told that a cease and desist order would Wetherbee and Henery also won two Washington on March 1, they were pre- follow. By Thursday, March 5, the docu- other at-large licenses in Pierce County. pared for the potentially rough road ahead mentation was in their hands, giving them They plan on opening them both in areas of them. Pierce County, where the shop is until March 19 to close their doors or face that currently have moratoriums. It re- located, is one of several municipalities in criminal charges or fines of up to $1,000 mains unclear to Wetherbee how the state Washington that currently has a moratori- per day. can continue to allow loosely-regulated um on recreational marijuana retail stores. As of Marijuana Venture’s press dead- medical marijuana dispensaries and ban Since The Gallery’s early March opening, line, it had yet to be determined whether tightly-regulated retail stores. He said will it has had local and national media cov- they will comply with Pierce County. continue to litigate with state and local erage nearly every day, including features “We do not believe that Pierce County authorities, until the vote of the people is by ABC Nightly News and The Huffing- will do something arbitrary or capricious,” granted. ton Post, as well as local ABC and NBC Wetherbee said. “We are working very affiliates, to name a few. closely with county officials to reach a Colette Thomas is an advisor for Recre- Although The Gallery was issued a rec- resolution that will please all of us.” ational Marijuana Management, which pro- reational marijuana retail license by the When asked if they have received any vides consulting services for I-502 retailers on Washington State Liquor Control Board, it resistance from licensed I-502 processors, licensing and compliance. RMM has assisted is currently operating in defiance of a lo- the co-owners replied “absolutely not.” multiple retailers open for business. She can be cal zoning ordinance. On Tuesday, March They have been inundated with support reached at [email protected].

102 | Marijuana Venture // April 2015

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The market will be serviced one way or the other. Bans will anchor the consumer to the Land-use codes turning black market if the regulated market is not convenient. The local use of code language and how dream into a nightmare it is being applied is hijacking the industry and financially devastating growers on a Years after legalization, officials maintain prohibitive approach very personal level. The majority of these By Shawn DeNae family farm sites are owned by folks clos- h, the life! Rolling on line. Their concerns reflect the tendrils er to retirement than college age. Many Aout of bed when of Reefer Madness and the Fear of the Un- are owned by women and it’s the best last your dreams of living known. They are using that uncontrollable chance they have to earn a living off their the good life awaken fear to change policies at the local level by land. The economic downturn caused many you to the sweet scent encouraging bans and moratoriums through people’s retirement dreams to slide down of success. Grabbing the use of zoning and land-use codes. the drain. Some of those that were most a cup of java before “You can’t outwit code,” Snohomish affected looked to this new industry as a strolling into the tropic County Planning Director Clay White said source of income. They invested heavily, warmth of your garden that gives you such during a recent meeting on the issue. Code only to be confronted by changes in zoning peace as you commune with your flowering is the teeth behind the authority on local codes that could put them out of business ladies. Cooing softly at their loveliness, you land use and councils all over the state are before they even open. dribble some water here, pluck a withered using it to bite hard into the establishment The fact that the Liquor Control Board leaf there and envision the harvest that will of legal marijuana does not require proof make your path to financial freedom a reali- business. THE BATTLE FOR of signed building ty. Ain’t the weed business grand? This is in direct op- permits, nor change- The hopes aspiring growers have for liv- position to not only LEGAL CANNABIS of-use permits, has ing the dream by developing a thriving le- the will of the voters, HAS MOVED INTO amplified the push gal marijuana business has lured thousands but the aspiring small back. Those who had into this land of delusions. It’s as if a trance family farmer that the LOCAL POLITICS completed permit ap- has overcome restless entrepreneurs as they system was designed plications submitted rush zombie-like into this tumultuous in- to encourage. Wash- AND IT HAS GOTTEN prior to bans are vest- fant industry. The unbridled joy of having ington is a right-to- ed and may be able to the chance to grow marijuana within a legal farm state, yet when UGLY, BUT THERE IS move forward; but is system is an unprecedented opportunity to the 2014 Legislature it a wise business de- improve one’s standing in life — to be in- voted to take away A SILVER LINING. cision to set up shop dependent; to finally be the boss; to be suc- certain agricultural tax deductions from in an antagonistic region? cessful, at last. marijuana farmers, that gave the local au- Adding to the pressure, the Liquor Con- Not so fast! The harsh reality is an ex- thorities the basis they are using to restrict trol Board is gearing up to tell hopeful busi- traordinary amount of hoops, boulders and this activity on farmland via strict commer- ness owners, “Get moving on your applica- road blocks to overcome prior to living the cial building codes designed for large fac- tion or lose it.” The board has no sympathy idyllic life many envision. The Washing- tory-type business that are mainly allowed to wait while these local issues get ironed ton State Liquor Control Board did a great only in industrial and commercial zones. out. Some applicants have been told to sim- job of listening to the voters prior to estab- The battle for legal cannabis has moved ply move or go against local authority. It is lishing the structure of legal weed in our into local politics and it has gotten ugly, but unbelievable that after all the background communities. They overwhelmingly heard there is a silver lining. Education rather than checks, we are being told that obeying local from small family farmers to “not forget the litigation seems to be key. Once local politi- land-use codes is not required. It is simply little guy,” and thus created the tiered sys- cians understand the cannabis community is heartless to assume people can afford to tem with a low entry fee. Thousands applied intelligent, organized and comprised of vot- move off their land. and overwhelmed the premature system. ers, they become softer to the idea of bring- Prior to the application process, which Now that grow sites and adult-use stores ing living wage jobs and economic growth started in November 2013, we devoted are popping up on the landscape, the hoops to their regions. countless hours to finding a warehouse lo- that were jumped through in getting the ap- “But what about the children?” scared cation close to our home. Landlords who plication complete seem benign compared citizens cry. We are all worried about the became privy to the situation either put their to the struggles at the local levels to actual- children. That is a primary reason why mar- foot down on the use or quickly raised lease ly implement the system. Local authorities ijuana needs to be legalized. We must make rates from 50 cents a square foot to more have been inundated by concerned residents access to marijuana at least as hard as ob- than $1. The high costs led us to realize the who now question their “yes” vote on Initia- taining alcohol. The kids need a deterrent warehouse option was not the best fit; we tive 502 as grow sites and retail stores come and the adult consumer is not going away. >> CONTINUED ON PAGE 106

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<< CONTINUED FROM PAGE 104 September showing the video from a re- low council member Terry Ryan are ready wanted to own the property that housed our cent council meeting where discussion of to institute a permanent ban. It reminds me future business. placing a moratorium on R5 was taking of the statement, “Don’t confuse me with We began to look outside the city and place. On Oct. 1, 2014, the council, in fact, the facts, my mind is made up!” discovered Snohomish County was being reversed its previous decision and placed a Despite the best effort of the R5 Coopera- progressive in its discussions of land use six-month hold on accepting permit appli- tive, a hearing on March 4, 2015 resulted in toward the cannabis industry. We involved cations for aspiring legal cannabis grows the moratorium being extended for an addi- ourselves in the democratic process of at- within the R5 zone. tional six months. This was seen as a small tending hearings, giving testimony and wit- A small group formed the R5 Cooperative victory since they did schedule further de- nessing deliberations. Nov. 13, 2013 was a with the intent to educate local officials, as liberations for March 25 (the results of that standing ovation day when the Snohomish opposed to litigating the decision. Hundreds meeting were unavailable as of Marijuana County Council adopted Ordinance 13-086 of hours have been devoted to this effort Venture’s press deadline). The county has allowing legal cannabis producer/proces- and thousands of dollars have been spent to since begun sending violation notices to sors to utilize R5 zoned land for this use. hire a land-use consultant, Reid Shockey, to licensed I-502 operators for not complying We submitted our application with an advocate on the behalf of I-502 applicants with local codes. address in rural Snohomish County and re- located in the R5 zone. We are one of only 14 companies that are ceived one of 86 letters sent from executive We have scheduled tours of legal grow considered vested within R5. We are con- John Lovick’s office confirming those appli- sites for the county’s Agricultural Advisory tinuing to move forward with our building cants’ addresses in R5 were zoned properly. Board and Planning Commission, as well permit with the intent to have our license by Our building permit application process be- as the Everett City Council and Snohomish the third quarter of 2015. gan in February 2014, with the hiring of an County Council. Many officials, once they The cannabis community is beginning to architect, land-use specialist, wetlands and visit a site, have concluded these operations show up in city, county and state chambers drainage engineers. Our completed building can be compatible within R5. Unfortunate- as decisions affecting our lives and the fu- permit application was accepted in late July ly, among the county council members, only ture of the industry are being made and it is 2014. We thought we were so very clever to chairman Dave Somers has taken a tour so making a difference. Getting to know your have found this little piece of paradise. far. Council member Ken Klein admitted he local officials, answering their concerns, A gut-wrenching email was received in consciously decided not to tour. He and fel- >> CONTINUED ON PAGE 109

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<< CONTINUED FROM PAGE 106 providing them with facts to counter-balance the unfounded fears will give them the political cover they need against the “not in my back yard” push back. Good work is being done by a very few dedicated advocates who need the support of the entire industry at all levels. So, keep a good hold on living that dream. Keep cooing over those beautiful flowers. And, most importantly, keep showing up to provide support. It’s going to take all kinds to make this legalization effort work and we are making a positive impact as together we crush the boulders standing in our paths to a better life, a better world and a better dream to replace this current nightmare of legalized cannabis. Legalization may be sexy, but implemen- tation sucks.

Shawn DeNae is CEO of Washington Bud Company, an aspiring I-502 Tier 2 producer/ processor applicant. She is one of the founding members of the Marijuana Business Associa- tion Women’s Alliance and believes women are poised, for the first time in history, to lead an industry. Packaging is the Perfect Finish to Your Brand Packaging is the ﬁnal element to present your product effectively. WS Packaging is the single source to help you differentiate your brand and products.

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www.marijuanaventure.com | 109 A LETTER FROM THE EDITOR

cades because growers had to be invisible. Greenhouse manufacturers have been de- Cannabis innovations will veloping high-tech facilities for tomatoes and ornamentals for ages. Now, they’ll be able to dial in exactly what would work revolutionize the industry best for cannabis growers, providing the ultimate best of both worlds between in- Who will invent the cotton gin of cannabis? door and outdoor cultivation. nnovation has al- There are probably hundreds of prod- Iways fascinated me, ucts that are used in traditional farming and it’s one of the as- and agriculture that can be adapted to the pects that I enjoy about cannabis market. In some cases, the man- publishing a business ufacturers might not want their product to magazine and being a be affiliated with an illegal drug. In other part of the cannabis in- cases, people might not have put two and dustry. two together yet. Because it’s been a black market en- But it’s only a matter of time. Those deavor for so long, the business of grow- companies that shunned marijuana will ing and selling marijuana hasn’t changed eventually come around, or watch their all that much in the past few decades prior competitors take a larger share of the mar- to legalization. Now, with nearly half the ket. And eventually somebody from the country allowing medical marijuana, four traditional agriculture industry is going to states legalizing recreational cannabis, look at a tool or a piece of software and a majority of Americans supporting full have that proverbial light bulb go off. legalization and the federal government Of course there’s a potential downside seriously considering the removal of mar- of any technological progress. ijuana from Schedule I of the Controlled Whitney’s masterpiece was considered Substances Act, the creative process can a secondary cause of the Civil War, as it really get ramped up. Eli Whitney’s original patent for the cot- fueled the need for more and more manual For the first time in our lifetime, it’s ton gin, dated March 14, 1794. labor and further entrenched the south in probably safe for people to openly invest slavery. time and money into products geared ficient and long-lasting as current LEDs, While I doubt very strongly any canna- specifically for cannabis. The impact that with the initial cost and reliable yield pro- bis-related inventions will lead to blood- will have is hard to predict, but I think it’s duction of high-intensity discharge light- shed, there may be a point in the near pretty safe to say that within the next cou- ing. future where tedious tasks like hand trim- ple years, we will see inventions — both Trimming machines have been getting ming and harvesting are figments of the large and small — that will revolutionize better and cheaper. past. the cannabis industry. And these are the Packaging options — obviously not a To me, that’s a bridge we’ll cross when stories that I look forward to writing as concern for the black market — are going we get there. the industry continues to evolve and gain to see a tremendous rise. GARRETT RUDOLPH more traction as a legitimate and recog- I’ve been talking with some people in EDITOR nized business. Eastern Washington who believe they In 1793, Eli Whitney invented the me- have created a hydroponic system that chanical cotton gin, and it changed the en- they believe will be a game-changer. Corrections tire cotton economy. From the consumer side of things, the There were several errors in the Somebody or something is likely to rise of vape pens are a classic example of March 2014 edition of Marijuana come along and do the same for cannabis, new technology quickly capturing a share Venture. Two names were spelled although in this case, it will probably be of the market. For several decades, smok- incorrectly: Ryan Cooper is one of many different inventions rather than one ing weed largely came in joint, pipe and the co-owners of The Happy Crop singular game-changer. bong varieties. Now, the methods of con- Shoppe (Page 14) and Gordon Red- You’re already starting to see it. sumption feel limitless, further opening man is the formulator/growers con- LED lights, for example, have been get- the possibility for cannabis to be enjoyed sultant for Flying Skull (Page 45). ting better and better for years. It won’t be by people who are against smoking. The editorial on Page 2 was at- long before a light is developed — be it To me, greenhouses are largely an un- tributed incorrectly. The author was LED, plasma or some as of yet unknown tapped gold mine for cannabis. Warehouse publisher Greg James. technology — that will be as energy-ef- cultivation was the best option for de-

110 | Marijuana Venture // April 2015