Delivering a High: Marijuana Home Delivery Business Growing in Seattle

When Washington legalized marijuana last year, entrepreneurs across the state began salivating over the many business opportunities they could create. The latest seems to be a pot delivery business that would effectively deliver marijuana to your home.

Currently, there are several businesses that deliver medical marijuana to patients at their homes. One such business is known as Nurse Nancy Medical Marijuana Delivery and it offers pot right to your door, seven days a week between 10am and 2 am. The business itself promises discreet delivery in 30 minutes and is thriving.

With recreational marijuana ready to begin sales in 2014, many businesses are wondering if they too can begin home delivery. Unfortunately, there may be a few obstacles in their way because the drug is still deemed an illegal narcotic on a federal level. The Justice Department may not go after sick people who use medical marijuana, but they have made no decisions on what they will do to businesses—even licensed ones.

When legalized pot sales begin in 2014, delivery businesses will likely seek to expand to include home delivery of recreational marijuana. How the federal government will feel about this is still anyone's guess. If they choose to go after businesses for selling and transporting marijuana, licensed businesses (like Nurse Nancy's) could even find that they are facing criminal charges. 

What YOU Need to Know About Legalized Marijuana

Marijuana is now legal in the State of Washington; however, that does not mean that "anything goes". There are still laws and regulations in place that will govern who can buy marijuana, how much marijuana you are allowed to buy, and who can provide, sell, and grow marijuana. If I-502 has you a little hazy, here are some important facts YOU need to know about legalized marijuana in Washington.

•  Anyone over the age of 21 can buy legalized marijuana and you do not have to be a resident of the State of Washington
•  Legalized marijuana will likely be up for sale sometime in the spring of 2014 if all goes well.
• Only authorized retail stores will be allowed to sell legalized marijuana and the number of those stores will be limited based on a formula that distributes the number of locations proportionate to the most populous cities in each county.
• Retail marijuana stores will be open between the hours of 8 a.m. and 12 a.m.
• The cost is estimated to be $12 per gram, but taxes may push this price even higher.
• A single transaction will be limited to one ounce of usable marijuana, sixteen ounces of marijuana infused product in solid form or seventy two ounces of marijuana infused product in liquid form.
• You will not be allowed to give marijuana away to another person. This will be considered delivering marijuana and will be a felony offense.
• In Washington, you will only be allowed to smoke marijuana in your home. If you smoke in public, you will face a civil fine. Some entrepreneurs are looking into creating "private clubs".
• I-502 only allows for possession of marijuana and does not give you the license to grow your own marijuana. Growing one plant is still considered manufacturing marijuana and will be classified as a felony.
• Driving under the influence of marijuana is still illegal and can lead to a DUI. If you are pulled over with more than .5 nanograms per mil of active THC in your blood then you can be charged with DUI.

Hemp Beer is Here and Washington Brewers Celebrate

The Seattle breweries were bound to get stoked about Washington's new legalized marijuana industry. This month, Redhook Brewery, in collaboration with Seattle's Hilliard's Beer, has announced the release of a new hemp beer—appropriately titled "Joint Effort". This beer is the brewers' way of celebrating the legalization of marijuana in Washington State.

“We’re really excited to release Joint Effort with Redhook because we have a lot of respect for how they helped shape craft beer in Washington. It’s the first collaboration beer either of us has done with another brewery and it’s fitting they started in Ballard a few blocks from where we are. Voting to legalize marijuana use in Washington is another example of the pioneering spirit that makes this state so great.”

                                              ---Ryan Hilliard, co-founder of Hilliard's Beer

Joint Effort is a session ale brewed with hemp seeds. It is dry-hopped with Zeus, Cascade, Summit hops, and has a resinous hop aroma that is balanced nicely by the nuttiness from the hemp seeds. To add to the fun, Joint Effort will be poured by a handle tap shaped like a bright yellow bong. This fun beer will only be available in Washington State and is sure to add some festivity to the newly legalized marijuana market.

If you live in the State of Washington and want to sample this fun and unique brew, call your local pub to see if they carry it. Joint Effort will be available on tap throughout the summer in Washington and then in 22-ounce bottles.

Washington's New Pot Laws Could be Good for Environment

The Washington State Liquor Control Board's decision to allow marijuana to be grown outdoors could have an unintended consequence for the environment—a good one. Some environmental advocates believe that this alone will reduce the electrical use and associated carbon emissions in our state; after all, indoor cannabis production is estimated to consume 3-5% of the state's electrical grid power. Being allowed to grow cannabis outdoors may help to significantly reduce the carbon dioxide emissions and help to conserve electricity, which in turn could lead to a lower cost to electrical ratepayers across the state.

Peer reviewed research published in the Journal of Energy Policy estimates that 1% of the nation's power is used for indoor cannabis production. This is valued at $6 billion annually and would be a significant reduction in our electrical consumption annually. Indoor cannabis production also produces 15 million metric tons of CO2 which is equivalent to 3 million cars on the road each year.

While the environmental impacts of being allowed to grow marijuana "out in the open" have not been extensively researched, environmental advocates will be watching Colorado and Washington with renewed interest. If the outdoor production of marijuana does indeed reduce CO2 emissions and electricity consumption, you can be sure other states are bound to follow in our "reduced" carbon footprints.

Is "Big Marijuana" Coming to Washington

Jamen Shively is coming…and to most marijuana activists, this is not necessarily a good thing. Shively is an aspiring pot profiteer who dreams of building a budding marijuana empire. The 45-year-old Microsoft manager vowed to raise $10 million quickly to build his marijuana empire and hopes to turn it into an international powerhouse. He wants his company, Diego Pellicer, to be world-renowned in marijuana circles and eventually across the globe.

While Shively has promised a "cautious and measured" expansion, many marijuana advocates and state regulators are nervous that he will attract unwanted attention to their new system and create a backlash across the country. His vision is remarkably similar to "Big Tobacco" who cashed in for years on American's addictions and abuse. Those who are in charge of growing Washington's legal marijuana economy are concerned that this type of profiteering could destroy the legalized marijuana movement and create havoc for the state.

At the moment, it is still unclear how the federal government plans to address Washington and Colorado's new pot laws. While the Justice Department has said that it doesn't intend to prosecute medical marijuana users, it may go after those individuals (like Shively) who try to get rich off of commercial sales. They may even sue to block Washington and Colorado pot growers, processors, and stores.

Government Spends $20 Billio per year Trying to Prevent an American High

In 2013, the United States government spent $17.7 billion on the NASA program. That same year, they spent an estimated $20 billion on the war on marijuana. Sadly, this enormous amount of money has been simply spent "trying" to stop people from getting high—not actually achieving it. In 2011, marijuana was the most commonly used illicit drug in the country and almost half of all adults have tried it at least once in their lives. These are the highest numbers ever recorded, so the government's $20 billion dollar/year marijuana crack-down has been largely ineffective.

Yet even though there are more adults using marijuana and it is more readily available than ever before, where has this money been going? Simple--this $20 billion has been spent to arrest and incarcerate individuals who possess, sell, and consume pot. Since 1989, more people have been put in jail for drug related offenses than for all other violent crimes combined. This is a disturbing trend that many hope the legalization of marijuana will curtail.

Advocates for the legalization of marijuana across the country often point to the fact that marijuana is safer than nicotine, less addictive than caffeine, and causes fewer deaths than alcohol, yet it is the only one that is still illegal. They believe that $20 billion is an awful lot to waste on the war on marijuana—especially since the majority of Americans back the legalization of marijuana. Now that Washington and Colorado have legalized pot, will the federal government join the movement?

Legalized Marijuana Sees Opposition from Medical Marijuana Community

For years advocates for medical marijuana have fought to have marijuana legalized in this country. Now, their dream is a reality in Washington and Colorado and more states are preparing to follow suit. Yet many of the same people who have crusaded so long and hard for legalized marijuana have spoken out against it, citing concerns with the new taxes and regulations. Their fear is that these taxes and regulations will affect their medical marijuana laws and they wish to keep these two as separate as they can.

Since medical marijuana was legalized in Washington, numerous medical marijuana collectives or co-ops have sprouted throughout the state. Most of these storefronts operate in a way that makes it possible for them to exchange their marijuana crops for donations instead of selling it. This exchange system has become very profitable for many medical marijuana individuals.

After I-502 passed in November, the Washington State Liquor Control Board has been working diligently to draft rules of the new pot system, including taxing marijuana and tracking "seed to store". It is exactly these types of taxes and regulations that have the medical marijuana community concerned.

Pat Hynes, part-owner of Professional Patient Co-op in Seattle's Fremont neighborhood voiced his concerns for the patients who need this medicine to feel better. Many are in constant and chronic pain and can barely afford to pay for their marijuana as it is. An additional 25%-50% in taxes would be devastating for many of them.

Another group that is concerned over I-502's regulations and taxes are the medical marijuana growers. Many are concerned that big business will run them out of town altogether. As it stands, large corporations, such as Phillip Morris and AB InBev are lobbying in Olympia. How I-502 and the new legalized marijuana business in Washington will affect the medical marijuana community remains to be seen.

US Attorney General Ready to Respond to Marijuana Legalization

United States Attorney General Eric Holder told the Senate that the Obama Administration is in the process of formulating a policy in response to states that have already legalized marijuana. These newly enacted laws in both Colorado and Washington have put the state laws in direct violation of the federal laws. Currently the federal law says it is still a crime to possess and sell marijuana.

"We are considering what the federal response to those new statutes will be and we will have the ability to announce what our policy will be relatively soon."

                   ---Eric Holder, United States Attorney General

There are many who believe that the US government should take steps to nullify Colorado and Washington's amended laws. These people include eight former heads of the Drug Enforcement Administration and four former drug czars. In their letter to the Attorney General, they stated that "our nation urgently needs action from Attorney General Holder to ensure that federal marijuana laws are enforced".

US House member Steve Cohen, however, responded that "the federal government should concentrate on shutting down meth labs, not the laboratories of Democracy". Even Obama himself has said that the enforcement of federal marijuana laws in Washington and Colorado would not be a priority. For now, Washington and Colorado pot enthusiasts wait patiently for the federal government's final decision.

Seminars Teach Budding Pot Entrepreneurs how to Start Marijuana Business

The Washington Cannabis Institute with the help of attorneys, business professionals, and other industry experts are providing seminars to help budding entrepreneurs start their own marijuana business in the state of Washington. After Initiative 502 passed in 2012, Washington became one of just two states to legalize the recreational use of marijuana. This means the need for marijuana growers, retail stores, and transportation businesses.

These weekend seminars will discuss everything from the cultivation of marijuana to current state pot laws regulating the sales of marijuana and the seminar's curriculum is designed specifically to help students and entrepreneurs understand the regulations and licensing requirements of running a legal pot business. Some of these classes will be given by attorneys in the Washington area who are familiar with these new pot laws and other classes will be run by successful marijuana growers and sellers who can offer valuable tips and real world advice about running a pot business.

These seminars are particularly useful now that Washington officials have finally set a few rules that must be followed by all marijuana industry professionals. These rules include tracking pot sales from "seed to store" and putting a limit on how many pot stores will be allowed to operate in one county. Washington also plans to use the criminal history point system to determine eligibility for procuring a license to legally grow and sell marijuana. 

War Against Marijuana Has Cost Taxpayers Dearly

Throughout Washington, legalized marijuana has become mainstream conversation. In fact, all across the country, more and more legislators and public officials are talking about the decriminalization of marijuana and the legalization of pot. One of the main reasons for all this talk is that as a nation we have seen a cultural shift in how we perceive marijuana and those who use it. In addition, the massive amounts of federal money that is spent to control marijuana use has many questioning if that money could be better spent elsewhere.

The American Civil Liberties Union (ACLU) has stated that over $3.6 billion a year is used in the enforcement of laws against drug possession (88% for marijuana related possession arrests). Our taxpayer dollars are hard at work to police, control, and limit the use of marijuana across the country. In fact, the War on Drugs has spent more than $1 trillion since its inception.

Here are some more startling statistics on the War against Marijuana:

• States will spend an estimated $20 billion to enforce marijuana laws over the next 6 years alone
• Each state pays approximately $750 per marijuana arrest
• $95 a day is spent housing each inmate that is arrested due to a marijuana-related offense
• The New York Police Department spent 1 million hours enforcing low-level marijuana offenses between   2002 and 2012
• One marijuana arrest is made every 42 seconds in the United States

Now, Washington and Colorado have legalized marijuana and hope to benefit economically from the tax revenue that will come from the sales, production, and farming of marijuana. In addition, those states will spend less money arresting and sentencing individuals for marijuana related crimes. How much revenue the state will earn from legalized marijuana remains to be seen. Yet many who support the legalization of marijuana believe legalized pot will ultimately be good for all taxpayers. 

Medical Marijuana Could Impede Washington's Recreational Pot Market

Under current Washington State law, marijuana can be used legally to treat a wide range of medical problems as long as it is prescribed by a physician. While this has been wonderful for patients with chronic and disabling pain, it could pose some serious problems for the new recreational pot market that is about to begin. State officials believe that it may now be necessary to raise taxes or impose strict rules on medical marijuana, and this news has medical marijuana patients and dispensaries up in arms.

In order to avoid undercutting the new recreational market, some officials want to impose higher taxes on medical marijuana. Since 1998, many storefronts that sell medical marijuana pay no taxes and individuals are allowed to grow their own medical marijuana in collective gardens. In contrast, the recreational use industry faces voter-approved mandate to tax their marijuana at a current rate of 75%. This is in addition to the state and local sales tax.

Washington's pot consultant Mark Kleiman and other legislators believe that the many of Washington's medical marijuana patients are actually recreational users who exaggerate their conditions. Since most of the pot will be consumed by a minority of price-conscious heavy users, cheaper medical marijuana will make it more difficult for the recreational market to become established.

Brian E. Smith, a spokesman for Washington's Liquor Control Board, agreed that medical marijuana will be a challenge to recreational pot due to its light regulations and taxes. While some of Washington's medical marijuana dispensaries have begun paying taxes in an attempt to lessen the chances of being shut down by local and federal authorities, a large majority have not. 

Washington Marijuana Reform Law has New Sponsor in Rep. Smith

Washington Representative Adam Smith has joined a coalition in Congress that is actively seeking to reform federal marijuana laws. Most importantly, this coalition wants the federal government to respect the rights of the states and their voters—especially those states that have already legalized recreational and medicinal marijuana. Smith has signed onto the Respect State Marijuana Laws Act which would immunize individuals and businesses that operate legally under their own state laws. This bill is a bipartisan bill and has the support of both Democrats and Republicans alike.

At the present time, 18 states have legalized medical marijuana dispensaries and 2 states (Washington and Colorado) have legalized recreational marijuana. As it stands, all of these states and individuals are still considered in violation of the Federal Controlled Substances Act which makes possession and distribution of marijuana a crime.

The Respect States Marijuana Laws Act has bipartisan sponsors such as Alaska Representative Don Young, Colorado Representative Jared Polis, and Oregon Representative Blumenauer. Smith is the first Washington lawmaker to fully support the Act and has the appreciation of the entire state's marijuana reform supporters and the ACLU of Washington.

The federal government's Federal Controlled Substances Act continues to stand in the way of marijuana reform and stands to jeopardize the new recreational marijuana industry in the State of Washington. Just last month, several medical marijuana dispensaries in the State of Washington received "cease and desist" letters ordering them to close up their shops—even though they were compliant with all state laws. If they fail to do so within 30 days, the letter stated that they would risk their property being seized by the federal government for being in violation of federal drug laws. 

Washington Releases First Regulations Regarding Legalized Marijuana Industry

It's been nearly eight months since Washington voters legalized marijuana, and now they finally have a few rules in place regarding their new legalized marijuana industry. Last fall, Washington and Colorado became the first states to legalize the sale of marijuana to adults over the age of 21. This historic moment, however, means that Washington and Colorado must pioneer the way for the new legalized marijuana movement and this requires putting the appropriate laws and regulations in place.

These new recently released regulations are based on hundreds of hours of internal research and deliberation. The staff at the state Liquor Control Board spent many hours visiting marijuana growing houses and studying the science behind what affects marijuana potency and how people get "high". They consulted with multiple industry experts and obtained input from over 3,000 individuals statewide. The board hopes that by creating a tightly regulated system, they can ensure that both large and small marijuana operations have a place in this emerging marijuana market.

Some of the new regulations are:

·         No sale of marijuana extracts allowed (such as hash)

·         All pot related businesses must have security systems and 24 hour surveillance

·         Any marijuana product sold would carry a label stating that this product may be "habit forming"

·         Marijuana will be tracked from seed to store

·         There will be a cap on the number of retail stores in each county

·         No cap will be placed on the number of licensed growers or processors

·         A criminal history point will be used in determining eligibility to grow, sell, or process pot

·         Criminal and financial background checks will be obtained on all financiers of pot businesses

Seattle City Council Considers New Zoning Laws for Marijuana Operations

Members of the Seattle city council have recently proposed a string of zoning ordinance changes that would hopefully lay the groundwork for how commercial marijuana operations will work in the future. While the city council sees these zoning proposals as positive progress, pot advocates warn that the plan could hurt the economy and send jobs outside of Seattle.

Marijuana lobbyist Phillip Dawdy warns that the city council needs to leave more than 10,000 square feet or people will just go outside of Seattle. This would lead to a loss of hundreds of jobs and the tax revenue that follows.

Seattle city council members want to restrict the pot industry from encroaching on the city's historic districts off limits to the pot industry. In addition, they want to keep a 1,000 foot buffer between pot stores and schools, parks, neighborhoods, libraries, and daycare centers.

Pot advocates believe, however, that the city council shouldn't be wasting their time rewriting zoning laws. Instead, they hoped that the city's leaders would be reaching out to the federal government who continues to threaten medical marijuana businesses in Seattle.

"Informing them that Seattle citizens are tired of these ridiculous laws, and as a city council, you don't want to see legal businesses within the city of Seattle to be underneath threat by the federal government."

                             --Jared Smith, the Responsible Marijuana Project

Federal Crackdown on Seattle Dispensaries Signals Return of War on Marijuana

The Drug Enforcement Administration has ordered 11 Seattle medical marijuana dispensaries to close their doors and cease operations within 30 days. Even though November's voter approved Initiative 502 legalized marijuana for adults over the age of 21 throughout the State of Washington, the 11 dispensaries received DEA letters because the distribution of marijuana is still illegal under federal law. The letter informed dispensary owners that they had 30 days to cease operations or their properties may be legally seized under federal drug trafficking laws.

At the present moment, it remains unclear why these particular dispensaries were singled out because all owners are fully compliant with state and local laws. One thing is certain, however, these letters signal a return of the war on marijuana.

“These letters suggest that if my clients remain in business, they could lose their companies, their homes, their cars, basically every piece of property that the Feds consider an asset. ”

---Seattle criminal defense attorney Kurt Boehl

These letters are strikingly similar to letters that were mailed last summer to more than 2 dozen dispensaries in the Seattle community. Last summer's letters referenced federal drug sentencing laws that prohibit the sales of marijuana within 1,000 feet of a school, park, or other type of sensitive location. Yet, neither Washington nor Seattle prohibits dispensaries from operating within 1,000 feet of a school or park and there is currently no federal law governing medical marijuana dispensaries and their proximity to schools.

Polls Show That Medical Marijuana Support Has Never Been Stronger

A poll released earlier this month showed that 85% of all voters agree that adults should be allowed to use cannabis for medicinal purposes if a physician prescribes it. This means that 9 out of every 10 Americans believe that medical marijuana should be legal; the highest level of public support ever reported. Although respondents were divided on whether they believed that most patients truly needed medical marijuana.

Currently, 18 states and Washington D.C. have enacted laws that authorize medical marijuana and numerous more states have laws pending in state legislatures. Some of these states include Illinois, New Hampshire, and New York.

Yet despite the overwhelming public support for medical marijuana law reform, there is still little federal support. House Bill 689, the States' Medical Marijuana Patient Protection Act currently only has less than 4% of the entire U.S. House of Representatives behind it. A bi-partisan group of US representatives have also introduced legislation known as the Respect State Marijuana Laws Act (House Bill 1523), but it is unknown whether this will get passed in the near future.

While the majority of Americans have warmed to the idea of legalizing medical marijuana, less than half the population are in support of broader legalization for recreational use. In fact, only 46% of voters favored broader legalization of marijuana. At the present time, only 2 states have voted to legalize recreational marijuana—Colorado and Washington.

Washington's Pot Consultant Cautions that Selling Marijuana may not be Highly Profitable

Washington's recently appointed pot consultant warns that recreational sales of marijuana may not be as profitable as many experts believe due to heavy taxes, regulations, and competition from untaxed collective gardens. In addition, it will most likely be a small number of heavy users that account for the majority of the sales of marijuana. Many of these users are already acquiring their marijuana from collective gardens that have already sprouted across the state.

“What if you gave pot legalization and nobody came? It is entirely possible that by the time we finish regulating and taxing this product, it’s going to be uncompetitive with what you can get at the collective gardens.”

                             ---Mark Kleiman, Washington's Pot Consultant and UCLA Professor

These are the challenges that Washington legislators will be facing over the next 12 months. If they tax recreational marijuana too heavily, they risk increasing the black market supply and lose valuable profits. If Washington and Colorado want to make recreational marijuana profitable, they need to have people come to the legal market rather than alternative ones. This means keeping costs competitive and taxes down.

Unfortunately, keeping the recreational market competitive may mean changing the medical marijuana market in Washington, something that patients and medical marijuana growers fear. While Kleiman is not leaning in that direction for now, the future remains cloudy for Washington's medical marijuana industry. 

Federal Legalization of Marijuana Would Generate Billions in Tax Revenue

Don't expect marijuana to be legalized federally any time soon, but if it is, experts suggest that it could bring in billions of dollars in tax revenue. 2010 research from the Cato Institute estimates that legalizing marijuana federally would generate $8.7 billion in federal and state tax revenue annually. This would help Washington lawmakers balance the national budget, something that has eluded them in recent years.

The researchers assumed that marijuana would be taxed similarly to alcohol and tobacco. The income earned by pot producers, sellers, and distributors would also be subject to standard income and sales tax. In addition, state and federal authorities could save billions in money that they currently spend trying to regulate and prosecute marijuana use.

Currently, Washington and Colorado are the only two states that have legalized marijuana, but more states are considering it, including California and Oregon. It seems that the majority of Americans also support the legalization of marijuana, which was reflected in several polls across the country.

"We don’t know the size of the marijuana market right now, and we certainly don’t know what would happen to the price and the demand for marijuana under different levels of legalization. But we do know that legalization would lead to a positive revenue impact on the income and sales tax side."

                   --- Carl Davis, senior analyst at the Institute on Taxation and Economic Policy 

Washington Delays Pot Sales Till Spring

The State of Washington is delaying pot sales until next spring, because the original timeline for granting marijuana growing and processing licenses is being pushed back until December .Washington's Liquor Control Board has been in charge of devising the rules that will govern this new industry. This includes specifying how the plants will be grown, how the product will be tested, and how many stores will be allowed to sell marijuana. This official timeline was changed based on input from several public forums.

In mid-May, the Liquor Control Board will begin drafting rules for all license types and these rules are expected to become effective in August. In September, the board will begin accepting applications for growing, processing, and retail licenses in Washington.

“If you were interested in becoming any of our licensees, you’d want to have a good idea of what the business landscape is going to be. For example, if you want to grow, how much competition will you have? How many retailers will there be? You’ll be able to get a sense of that right from the beginning.”

                             --- Brian Smith, Spokesman for the Washington Liquor Control Board

All eyes are on the State of Washington and on Colorado, since they were the first states to legalize recreational marijuana for adults over the age of 21. If this goes well, then other states in the country are sure to follow. As a result, the Liquor Control Board is eager to get this thing right---the first time.

Washington Lawmakers Continue to Push for Federal Marijuana Tax

Washington legislators are salivating over the different types of taxes they can impose on the state's new recreational marijuana industry. Both Washington and Colorado state lawmakers continue to push for a federal marijuana tax on the sales of recreational marijuana. This tax would be allocated for public services and schools.

Some estimate that a federal tax on marijuana would bring in as much as $100 million in potential revenue. In California, the director of the California National Organization for the Reform of Marijuana Laws estimates that if California legalized marijuana, the state could bring in as much as $1.2 billion in tax revenues.

Yet in the industry, there are many that believe these estimates to be too high. Once marijuana is legalized, they expect the price to fall substantially, which will bring in lower than anticipated taxes. They are also concerned that increasing taxes on recreational marijuana will only drive people to purchase the product from illegal dealers. Even with these warnings, however, Washington state lawmakers are considering adding a voter-approved 25% tax to marijuana production.

Colorado is pushing or a federal tax code that would allow the state marijuana business to claim tax deductions. Until then, marijuana growers, producers, and sellers, wait anxiously to see how the new taxes and deductions will affect their new enterprise.