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Marijuana News in Arizona and World

D.C. Marijuana

Despite warnings from congressional members, Mayor Muriel Bowser allowed D.C.’s marijuana legalization law to take effect on Feb 26.

Rep. Jason Chaffetz, who chairs the House Oversight Committee, told Bowser that if she continued with implementing marijuana legalization she would face “very serious consequences.” Chaffetz also stated: “You can go to prison for this” and “we’re not playing a little game here.”

Bowser was undeterred by the threat and stated that “We are acting lawfully. I have a lot of things to do, being in jail wouldn’t be a good thing.”

Almost two thirds of D.C. voters approved Initiative 71 last November. Under Initiative 71, any person age 21 or older will be allowed to possess two ounces or less of marijuana, be able to use marijuana on privately owned property, and donate one ounce or less of marijuana to another person as long as no money, goods or services are exchanged.

Marijuana Cultivation Facility

There can be extreme build-out costs when it comes to outfitting a warehouse for medical marijuana cultivation. And Arizona has some of the priciest build-out costs in the entire country because of the recreational marijuana legalization effort that will be on the 2016 ballot.

A company that analyzes building permit and construction data found that just after Colorado (where recreational marijuana use is legal), Arizona has some of the highest construction build-out costs in the nation.

They found it cost $764,400 to convert a warehouse building in central Phoenix into a medical marijuana cultivation facility for Nature’s AZ Medicinesdispensary.

There are many rules and regulations placed on indoor medical marijuana cultivation facilities in Arizona and other states, but there are also many advantages to building these enclosed, warehouse cultivation sites because they offer climate controlled conditions and heightened security measures.

Earl Blumenauer

Two House bills were filed last Friday that together would legalize, regulate and tax marijuana at the federal level, effectively ending the U.S.’s decades-long prohibition on marijuana.

The first bill, the Regulate Marijuana Like Alcohol Act, would remove marijuana from the Controlled Substances Act’s schedules, transfer oversight of the substance from the Drug Enforcement Administration (DEA) to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and would ultimately regulate marijuana in a way similar to alcohol.

The second bill, the Marijuana Tax Revenue Act, would set up a federal excise tax for regulated marijuana sales in the U.S.

“As more states move to legalize marijuana as Oregon, Colorado, Washington and Alaska have done,” noted Rep. Earl Blumenauer (D-Ore.), “it’s imperative the federal government become a full partner in building a workable and safe framework.”

The bills wouldn’t force states to legalize marijuana, but the new federal regulatory framework would be set in place for the states that do decide to legalize marijuana.

History of Marijuana

Marijuana is currently illegal in most parts of the world, but its use as a medicine dates back thousands of years.

As the debate over legalizing marijuana heats up, many people continue to dispute the value of marijuana as a treatment for various ailments. But, as the following facts show, history tells a much clearer story:

1. The earliest record of marijuana used and medicine comes from ancient China.

In 2737 BC, Chinese Emperor Shennong wrote a book on medicine that included marijuana as a treatment for many conditions. According to ancient Chinese texts, marijuana was thought to be helpful for constipation, gout, rheumatism and absent-mindedness.

Interestingly, Shennong was not only an emperor but a pharmacologist as well. He was said to have tried hundreds of herbs on himself in order to test their medical value.

2. Ancient Egyptians were the first to use marijuana as a treatment for tumors.

The 2nd century Fayyum Medical Papyrus, an ancient Egyptian text, is believed to contain the earliest record of marijuana as an ingredient in cancer medicine.

While little is known about the successes of ancient Egyptian cancer treatments, marijuana continues to receive significant interest as a cancer therapy today.

3. Marijuana was used as a veterinary medicine in ancient Greece.

The ancient Greeks used cannabis to dress wounds and sores on their horses after battle. The plant was also given to humans for a variety of ailments, including ear pain and inflammation.

Interestingly, the practice of medical cannabis/marijuana is believed to have spread to Arabic countries from ancient Greece.

4. Medical marijuana was introduced to Western medicine in the mid-1800s.

In the 1830s, an Irish physician by the name of William Brooke O’Shaughnessy observed the use of medical marijuana during a trip to India.

After studying its effects, he introduced marijuana to physicians in England as a treatment for a wide range of conditions, including muscle spasms, rheumatism, epilepsy and pain. As early reports of its effectiveness were published, the popularity of marijuana-based medicines quickly spread across Europe and North America.

5. The name ‘indica’ refers to Indian cannabis.

The name Cannabis indica was originally thought up by a French biologist in 1785. Jean-Baptiste Lamarck was also visiting India when he observed a difference between locally-grown cannabis and its European cousin, the hemp plant.

European hemp was mostly used for agricultural purposes and was known at the time as Cannabis sativa. Lamarck decided to classify the Indian species separately, giving it the name Cannabis indica.

6. Cannabis was listed in the United States Pharmacopeia from 1851 until 1941.

The United States Pharmacopeia (USP) provides a list of acceptable medical products each year, and cannabis/marijuana was recognized in many of its earliest editions. But while cannabis/marijuana preparations were widely prescribed in the late 1800s, they began to be replaced by synthetic drugs during the 20th century.

Leading up to and following the passage of the 1937 Marihuana Tax Act, prescribing cannabis/marijuana became increasingly difficult and its once-prominent role in Western medicine was soon forgotten. It was removed from the USP in 1942 and has never appeared since.

Marijuana Patient

How to Become a Medical Marijuana Patient in AZ

To become a medical marijuana patient in Arizona a person must be:

18 years or older (or have your legal guardian registered as your caregiver)
– Must have a valid Arizona Driver’s License or Arizona Identification Card
– Must have an Arizona residential address
– Must have a minimum of one qualifying condition listed below:

  •      Cancer
  •      Glaucoma
  •      Human Immunodeficiency Virus (HIV)
  •      Acquired Immune Deficiency Syndrome (AIDS)
  •      Hepatitis C
  •      Amyotrophic Lateral Sclerosis (ALS)
  •      Crohn’s disease
  •      Agitation of Alzheimer’s disease
  •      A chronic or debilitating disease or medical condition or the treatment for a chronic or debilitating disease or medical condition that causes:
  •      Cachexia or wasting syndrome;
  •      Severe and chronic pain (e.g. arthritis, migraines, etc);
  •      Severe nausea;
  •      Seizures, including those characteristic of epilepsy;
  •      Severe or persistent muscle spasms, including those characteristic of multiple sclerosis
  •      Post-traumatic stress disorder (PTSD)

– Must have your medical records for at least the previous 12 months. Furthermore, those medical records must include the diagnosis of your qualifying medical condition.

If you meet the above criteria then schedule an appointment with a marijuana doctor office to get qualified to use medical marijuana. Once qualified, the person will receive a medical marijuana card in the mail. With the card they can purchase marijuana from any Arizona dispensary.

To learn more read: “How to Get a Medical Marijuana Card”

Women Grow

The Phoenix chapter of Women Grow, a national network supporting female entrepreneurs in the cannabis industry, will host its next monthly networking event on Thursday, March 5, from 6:30 – 9 p.m., at Optima Camelview, located at the intersection of Scottsdale Road and Highland Road, 7177 E. Rancho Vista Drive, Scottsdale. Open to the public, the event is an opportunity to learn about dispensary inspection laws in Arizona, as well as medical director compliance.

Held on the first Thursday of each month, Women Grow chapter events offer opportunities for personal introductions, open networking, and a speaking program. Admission is $30 in advance or $35 at the door. For information and to purchase tickets, visit womengrow.com/events. Attendees are encouraged to RSVP in advance.

Women Grow is a national network educating, empowering and connecting women in the cannabis industry through monthly networking events, national conferences and shining a spotlight on aspiring and established women leaders in the cannabis industry.

Will Humble ADHS

Will Humble, the director of the Arizona Department of Health Services (ADHS), is stepping down on March 3 after 23 years working for the state.

“This has been an awesome job,” wrote Humble on the Arizona Department of Health Services’ Director’s Blog. He went on to mention: “Careers have a life cycle. Figuring out when it’s time to turn the page and move on to something else is a hard thing to do. That time has come for me.”

Humble has yet to name an interim or permanent director for the ADHS, but a decision is expected within a week.

Humble constantly fought against the Arizona Medical Marijuana Act (AMMA) during his time at the ADHS. Humble tried to make Arizona’s medical marijuana laws stricter and continually denied legitimate petitions to add qualifying conditions to the AMMA.

AZ Marijuana Law

Colorado Marijuana Statistics

The entire world at large has been watching Colorado throughout 2014 because it’s the first place to legalize marijuana for recreational use. Many people predicted positive outcomes while others predicted negative. Now that a full year has passed, it appears that Colorado’s recreational marijuana industry was a gigantic success; state revenues are up thanks to taxes from sales and crime rates are down.

With such amazing statistics, it is safe to assume that many other states – such as California, Arizona, Nevada, and others – will legalize marijuana for recreational use via ballot initiates in 2016. Below are some astonishing facts from Colorado’s marijuana industry in 2014:

1. 130.3 metric tons – Colorado’s annual demand for marijuana, which is equal to 36.8 million “eighths” of marijuana flower.

2. 485,000 – The number of adults who are 21 and older using marijuana on a regular basis (at least once a month), which is about 9 percent of the state’s population.

3. 23 percent – The amount of Colorado’s user population that consumes marijuana near daily.

4. 90 percent – The amount of recreational marijuana sales that out-of-state tourists are responsible for purchasing at shops in mountain resort communities.

5. 7 percent – The amount of Colorado’s annual marijuana demand that was purchased by out-of-state tourists.

6. -9 percent – The price drop on a recreational eighth of marijuana flower at about a dozen major Colorado marijuana shops from January 2014 ($53.88) to December 2014 ($48.95).

7. $246,810,599.03 – The state’s total recreational marijuana sales from January to October 2014 (November and December data not yet available from the Colorado Department of Revenue).

8. $326,716,273.59 – Colorado’s total medical marijuana sales from January to October 2014. (That’s $573,526,872.62 in 10 months for both recreational and medical pot sales in Colorado.)

9. $60.1 million – The amount Colorado has made in via taxes, licenses and fees on recreational and medical marijuana from January to October 2014.

10. 10 milligrams of THC – Colorado’s single-serving size for marijuana edibles, with 100 milligrams maximum allowed in an individually packaged edible being sold for recreational use.

11. 103,918 – The number of medical marijuana patients reporting “severe pain” as their qualifying medical condition for a marijuana card, which makes up 94 percent of the state’s total patients.

12. Zero – The number of reports of THC-infused edibles (candy) given to trick-or-treaters on Halloween, regardless of widespread national concern that legal marijuana would lead to marijuana-infused candies in children’s Halloween gifts.

Marijuana Edibles

Legalization of marijuana across the U.S. is being projected to become a larger success than the organic food industry, and if so, Whole Foods and other major retailers could very well jump on the bandwagon.

“It’s possible that Whole Foods could be the Whole Foods of cannabis,” said an insider at the ArcView Group that does market analyses on the marijuana industry.

When asked at a panel if Whole Foods would ever sell marijuana, Whole Foods CEO reportedly said only if the it were legal to use and the local community approved.

The ArcView Group’s 3rd State of Legal Marijuana Markets report found that if legalized nationwide, the U.S. marijuana industry would surpass the $33.1 billion organic food industry by approximately $3 billion.

“I’ve studied the growth of the nutrition and the organic food industries for years,” said Patrick Rea, executive editor of the ArcView report. “I believe the cannabis industry will be an even bigger opportunity. Yet, there are risks associated with a fragmented and nascent industry that is growing so fast.”

The report also found that consumers purchased $370 million worth of marijuana products in 2014 in Colorado and Washington, and that Arizona was the fastest developing major marijuana market last year, enlarging from $35 million in sales in 2013 to $155 million in 2014.

“With Oregon and Alaska coming online soon and with the potential of six states including California going legal in 2016, legalization will be the largest driver of market growth going forward,” stated an ArcView insider.

Overall, the U.S. legal marijuana industry grew 74% to $2.7 billion, and about $30 million per year goes to educational and political work for nonprofits working on marijuana issues.

Arizona Recreational Marijuana Act

Article by Jeffrey S. Kaufman for AZmarijuana.com.

I just received a copy of the Marijuana Policy Project of Arizona’s draft for the 2016 Arizona Recreational Marijuana Act. The proposed initiative will decriminalize marijuana (in limited quantities) and allow its possession and growth by everyone over 21 years of age.

Here is my take on it, from the point of view of various segments of society:

Consumers: Can grow 6 plants and don’t need a special card to purchase recreational marijuana. Consumers don’t even have to be a state resident to get high in two totally different ways over the Grand Canyon (aside from the federal land issue). Consumers can possess up to 1 ounce at a time, including up to 5 grams of extracts, waxes, etc. Tinctures and edibles are treated fairly. Consumers can still only consume marijuana on private property, with permission of the property owner. The DUI standards are clarified to just and only require proof that the driver was actually “impaired” in order to be convicted, rather than basing charges on the presence of metabolites of THC in one’s system.

The tax rate is 15%, plus the usual sales taxes. No need to by a card. Marijuana must be tested, which will raise the price, but make it safer, at least theoretically.

The penalty of possession of more than 1 oz., but less than 2.5 oz is a “petty offense,” like littering, subject to a fine of no more than $300.00.

Businesses: For those that are already in or want to get into the marijuana business, there will be two Gold Rushes. Some existing licensees (licensed dispensaries) and their board members will have the exclusive right to become recreational marijuana cultivators and licensed retail recreational marijuana shops, until July 1, 2019. It makes sense on many levels. Unless you are willing to wait until July 2, 2019, if you are not already a board member of a medical marijuana dispensary when the Act passes in November, 2016, you won’t be happy.

On the other hand, subject to rules to be adopted by ADHS, you can still become a licensed “marijuana distributor” (wholesaler and/or delivery service) of a licensed “marijuana cultivator.” You can even become a licensed wholesale “marijuana product manufacturer” of edibles, tinctures, wax, etc., without owning a dispensary or cultivation site.

The cost of getting into recreational business is “grandormous,” presumably to discourage the timid or weak. Dispensaries: $20,000 the first year; $6,600.00 thereafter. Cultivators: $30,000.00 the first year; $10,000 thereafter. Product Manufacturers, infusers, kitchens: $10,000 plus the cost of government compliance; $3,300.00 thereafter. “Marijuana distributors,” delivery services and wholesalers of licensed recreational cultivation and/or maybe dispensary supplied medicine: $15,000 the first year; $5,000 thereafter. Testing facilities: $15,000, plus the cost of government compliance; $5,000.00 thereafter.

Oh, by the way, I forgot to tell you that the recreational program, including the millions it expects to raise, is going to be run by the Arizona Department of Gaming, not the Arizona Department of Health Services. Perhaps we will be seeing advertisements that say something like: “You’ll benefit more by using marijuana legally, than playing the lottery.”

Jeffrey S. Kaufman, Esq.
5725 N. Scottsdale Road, Ste. 190
Scottsdale, AZ 85254.
Ph: 480-994-8000
Fax: 480-994-8129
jeff@kaufmanesq.com
www.jeffkaufmanlaw.com
www.arizonamarijuanalawyers.com