Jah Ganja & Reggae, Limited held a seminar on operating a legal ganja business in Jamaica. The seminar discussed Jamaica's legalization of ganja for medical, scientific and Rastafarian purposes. It outlined the licensing requirements and categories being established by Jamaica's Cannabis Licensing Authority. These include cultivator, processing, transportation, retail and research licenses. The seminar provided guidance on complying with regulations regarding seed-to-sale tracking, quality control, security, and other business considerations for participants to successfully obtain licenses and operate compliant ganja businesses in Jamaica.
1. KENNY’S ITALIAN CAFÉ - NEGRIL
SATURDAY, MARCH 4, 2017
JAH GANJA & REGGAE, LIMITED’S SEMINAR :
OPERATING A SUCESSFUL LEGAL GANJA
BUSINESS IN JAMAICA
2. DISCLAIMER
In plain English, as a matter of good policy, my comments, opinions, and
observations are solely my own and do not necessarily represent the views of
the Cannabis Licensing Authority (“CLA”), the US Department of Justice
(“DOJ”), State licensing authorities or any of their staffs.
Thank you for allowing I&I All to Reason about current Ganja Industry
Regulations, I would ask that you hold off on any comments until the end of
this presentation and then I will be happy to take questions.
The CLA’s rule making process is dynamic and it will take patience and time to
properly implement over the near future.
3. JAH GANJA & REGGAE, LIMITED
(“JGR”)
• Jah Ganja & Reggae, Limited (“JGR”) provides expert business consulting
and regulatory compliance with respect to international requirements,
including the Cannabis Licensing Authority’s (“CLA”), legalizing ganja for
medical, scientific, research, as well as Rastafari Sacramental purposes in
Jamaica, and eventually through global exportation agreements.
• Through its current connections in the nascent legal Jamaican ganja industry
there are incredible international opportunities available for business
expertise and consulting services to help cultivators, processors, transporters,
marketers, edible makers, herb houses, dispensaries and ancillary businesses
achieve economic success while remaining fully compliant with licensing
and registration mandates.
4. JGR’S PRINCIPAL
• Mr. Barry R. Gainsburg, Esq., or the WHITE LION, is the Chief Executive Officer of JGR, a
Jamaican Company. Mr. Gainsburg has over 20 years’ experience providing legal, securities,
regulatory, compliance and corporate advice in the financial industry. JGR is also affiliated
with its Florida sister company, JGR, LLC.
• Prior to establishing JGR in February 2016, Barry previously served as General Counsel for
BioTrackTHC™, a seed-to-sale tracking software provider in the cannabis industry. The White
Lion now serves a a Special Business Consultant to Kind Financial/Agrisoft. Barry been
instrumental in providing cannabis related consulting services to regulatory agencies,
cultivators, processors, edible manufacturers, dispensaries and ancillary cannabis businesses.
• The White Lion has been internationally recognized as an expert in the Cannabis Industry,
being named to the Editorial Board of Cannabis Law Report Editorial Board focusing on
Jamaica and West Indies developments.
• Mr. Gainsburg, received his Bachelor of Arts in Political Science from the Johns Hopkins
University in January 1990 and his Juris Doctorate Degree from Hofstra Law School in May
1993. Mr. Gainsburg is admitted to the New York and Florida Bars, as well as the U.S. Supreme
Court.
5. U.S. CANNABIS LEGALIZATION
• Federally, in the U.S., possession, manufacturer, distribution and proceeds derived
from any such activities regarding cannabis, is illegal based on its Schedule I
Classification under the Federal Controlled Substance Act (“CSA”).
• Under the CSA, Cannabis includes THC, CBD and Hemp based products
• Schedule I classification is based on a substance being determined to be (i) of no
medical value; and (ii) highly addictive – like Heroin or LSD. Although the U.S. has a
patent of cannabis with the US Patent and Trademark Office.
• In August 2016, the U.S. DEA decided NOT to reclassify Cannabis from Schedule I –
but will allow some limited research in furtherance of exploring medicinal value.
• In February 2017, with Jeff Sessions as the head of the DOJ, the Drumpf
Administration states that they will not seek federal enforcement of against
legalized medical use of cannabis, but recreational use – even in approved
states - was still subject to FEDERAL PROSECUTION. Reversal of Cole
Memorandum issued under the Obama Administration.
6. STATE LEGALIZATION
• Currently Cannabis use is Medically approved in 28 States – Not All
Implementing
• Currently Cannabis use is approved for Recreational use in 8 states –
California, Oregon, Washington, Alaska, Colorado, Nevada, Massachusetts
and Washington D.C.
• Creates conflicts between states and federal governments.
• No ability to obtain Financial Services – banking or credit
• No ability to conduct interstate commerce since cannabis cannot cross
federal state lines.
• Leads to huge economic inefficiencies and different regulatory schemes.
7. DANGEROUS DRUGS
(AMENDMENT) ACT 2015
Amendments to the DDA made in February 2015 by the Dangerous Drugs
(Amendment) Act 2015 introduced several important changes to the way the
DDA now operates in relation to ganja.
New provisions are in place regarding the possession and smoking of ganja,
use of ganja by persons of the Rastafarian faith, and use of ganja for medical,
therapeutic and scientific purposes.
The Dangerous Drugs (Amendment) Act 2015 came into operation on April 15
2015. Certain aspects of the new law will not be operational until regulations,
which are being developed by the Cannabis Licensing Authority (“CLA”), are
put in place
http://moj.gov.jm/sites/default/files/Dangerous%20Drugs%20Amendment%20A
ct%202015%20Fact%20Sheet_0.pdf
8. CANNABIS LICENSING AUTHORITY
(“CLA”)
• The CLA, compromised of sixteen (16) members, was created by the
Dangerous Drug (Amendment) Act 2015, has powers to make and oversee
the implementation of regulations for licenses, permits and other
authorizations for the cultivation, processing, distribution, sale and
transportation of hemp as well as ganja, for medicinal, scientific and
therapeutic purposes.
• Rasta Community Sacramental use of Ganja is approved. Rasta can grow,
possess, consume and gift Ganja but cannot sell it commercially without CLA
Registration.
• The Release said the regulations have been approved address the licensing
regime for the ganja industry and do not deal with hemp products, which
will be addressed in regulations to be later developed.
9. BASIC REQUIREMENTS
• Applicants will be either Individuals, Companies, Cooperatives or Friendly
Societies.
• All Applicants must establish a Banking Account.
• Criminal Background Disclosures for All Employees.
• Financial Disclosures including prior bankruptcies.
• Legal disclosures about prior litigations in last 5 years.
• Tax compliance also must be demonstrated.
10. DEMOGRAPHICS
• The CLA’s Regulations are intended to cover different subsets of medical
ganja use -
• Local Jamaican Residents
• Already using medical ganja and can grow up to 5 plants per residents.
• Tourists
• Those with medical cannabis cards from other jurisdictions
• Those who wish to “Self-Declare”
• GOJ Ganja ATMs at Cruise Ports and Airports
• What is the cost of obtaining a government permit - US$50? US$25?
11. BUSINESS CONSIDERATIONS
• The GOJ has denied its intention to establish kiosks directly in the ports to sell
medical ganja directly to Tourists as they arrive.
• The GOJ is now considering how to incorporate ALL INCLUSIVE RESORTS into
the legal medical cannabis landscape. This will have a major effect on the
street viability of dispensaries in the relevant locals such as Negril, MoBay and
Ochie.
• Street Recreational Business will continue to exist. So Taxi Drivers, Concierges,
Gardeners, Rasta will still continue to sell to tourists. It is unrealistic to think
that the GOJ will bring in massive police efforts to curb. They will have
“Second Touch”.
• How can you compete as a licensed and compliant CLA
registrant in this landscape?
12. BE DIFFERENT,
BE UNIQUE !
• You have two options to compete with the crowd:
• First, You need a unique product – a unique strain, edibles,
oils, or concentrate. This eliminates or narrows competition.
• Second, You need a unique experience – a farm tour, a
spa, a herb house overlooking a scenic waterfall, etc.
• Finally, you will need a strategic business plan including
financial projections to implement your business strategy, in
addition to complying with CLA regulatory and licensing
requirements.
13. CLA LICENSING CATEGORIES
• The Cannabis Licensing Authority has already indicated that eleven (11)
types of licenses across five (5) main categories will be made available to
interested persons, ensuring coverage over the entire value chain for the
Jamaican ganja industry.
• The 5 main categories are:
• Cultivator – small 0-1 Acre, medium 1-5 Acres and large 5+ Acres;
• Processing – two tiers;
• Transportation;
• Retailing – Herb House (Dispensary), as well as Therapeutic; and
• Research and Development.
• Proposed by I – Ganja Touring License – Also covers Rastafari Community
Excursions
14. CULTIVATORS
3 Tiers (Levels) of Cultivator Licences
Tier 1 – up to 1.0 acres
Tier 2 – 1.0 Acres to 4.9 acres
Tier 3 – 5 + Acres
1. Proof of land ownership or permission to use land
2. Records of every transaction are required. Every person entering and exiting the farm;
and all ganja plants or products received, sold, or otherwise disposed of. The Farmer will
also need to submit reports to the CLA in the format and time required.
3. Farmer must secure his property with a six-foot-high chain-link fence around the
perimeter and surveillance cameras that can be tracked on a website.
4. Before growing his first crop of ganja, he must show proof of contracts with licensed
'downstream buyers' who may demand structures (such as greenhouses with irrigation,
cooling systems, and artificial light) that add to the Farmer’s cost.
15. SEED-TO-SALE TRACKING
• Seed-to-sale Tracking is required under international treaty obligations and if a country wishes
to export this will be a necessary pre-requisite. Currently there is a UN Convention on Drugs
Treaty preventing the global exportation and use of ganja. However Israel and Canada are
seeking to challenge this status. Jamaica continues to watch from the rear passenger seat.
• This requirement is simply a recording of the chain of custody of ganja possession and access,
as well as movement of the ganja plant, its clones, and derivatives from planting to point of
sale. This is to ensure integrity of the system in terms of safeguarding against illegal activities.
• Protection of Private and Confidential information against Hacking and illegal Governmental
Inquiries. MJ Freeway Hacking attack in January 2017 destroying their system internally, but
not stealing client information.
• Government System v. Commercial System – exchange of required information by electronic
communications (“MAGIC ELECTRONS”). APIs and issues of seamless connectivity.
20. COMPLIANCE & BUSINESS
• CLA Licensure and Renewals
• Subject to Annual Audit by CLA
• Tax Compliance
• Business Consulting for all Ganja Licensing Categories
• Ganja Business & Strategic Planning
• Business Marketing Opportunities
• Potential Capital Investment Funding
• Corporate Formations and Governance
22. CLA LICENSING FEE
Type of Fee Type of Licence Annual Licence Fee
Application Processing Fees
(Non-Refundable; Payable after application is reviewed
for completeness)
Individual US$300 (Fee per application)
Company, Business or Cooperative US$500 (Fee per application)
Licence Fees
(Non-Refundable; Payable when Licence is Approved)
Cultivator's Licence
Tier 1 US$2,000
Tier 2 US$2,500 per acre
Tier 3 US$3,000 per acre
Processing Licence
Tier 1 US$3,500
Tier 2 US$10,000
Transport Licence -
US$10,000 for the first vehicle and
US$1,000 for each additional vehicle
Retail Licence
Herb House US$2,500
Therapeutic US$2,500
Research and Development Licence
Experimental US$5,000
Analytical Services US$5,000
Security Bond (Refundable)
(Payable when Licence is Approved)
Cultivator's Licence
Tier 1 US$2,000
Tier 2 and 3 US$3,000 per acre
Processing Licence - US$3,000
Research and Development Licence - US$3,000
23. FX ISSUES J$ VS. US$
Jamaican Dollar Forecast 2016-2020
The Jamaican Dollar is expected to trade at 126.00 by the end of
this quarter, according to Trading Economics global macro models
and analysts expectations. Looking forward, it is estimated to trade
at 130.00 in 12 months time.
24. COMMENTARY
Dear Editorial Board Member,
Thankyou For Your Contributed Article
To Issue 1
of
Cannabis Law Journal
We have opened discussions with the USA National Cannabis Bar Association about a possible co-publishing agreement and we also have a
new editorial board member, Barry Gainsburg (FL) who will be writing about cannabis and legal issues in the West Indies with a particular focus
on Jamaica.
Commentary on Jamaica’s Proposed Dangerous Drugs
(Licensing) Interim Regulations 2016
https://www.cannabisbusinessexecutive.com/2016/05/commentary-jamaicas-proposed-dangerous-
drugs-cannabis-licensing-interim-regulations-2016