Seattle Pot Tourism Set to Take Off

When the State of Washington voted to legalize marijuana in November, legislators envisioned a tourism explosion. As such, they have begun to prepare for this sudden influx of visitors in an attempt to prevent pot tourism from opening the door to illegal activities. A new state-hired consultant projects that the State of Washington may earn an additional $180 million a year in tax revenue from marijuana sales alone.

Entrepreneurs are also preparing for marijuana tourism as a serious tourism industry and would like to see Washington's pot tourism take-off in the coming years. They have already begun planning different business models in order to take full advantage of the pot tourism. Even Washington's wine industry has anticipated full tours through organic pot farms, similar to winery tours and brewery tours.

Washington's new pot tourism will mean that more individuals will be able to get into the mix, including tour guides, guidebook writers, and even smoothie companies who are looking to sell marijuana infused smoothies. Local artists have even begun to create merchandise and art works that in an attempt to sell Washington's new "brand" of tourism. These coffee mugs, t-shirts, and hand towels will depict the most popular marijuana strains.

Even the Seattle police have gotten into the mix and have provided a guide to the legal use of marijuana. This guide is titled "Marijwhatnow? A Guide to Legal Marijuana Use in Seattle."

Washington Medical Marijuana Community Wants to Remain Separate

The State of Washington recently hired a pot tsar to help them determine exactly how to regulate the production, distribution, and sale of legalized marijuana. Yet even as the state continues to move forward with legalized marijuana, providers and patients in Washington's medical marijuana community would prefer to remain segregated from I-502's rules, licenses, and taxes.

Currently, state laws allow patients who have medical marijuana authorization to grow their own cannabis plants. They are also legally protected and allowed to participate in collective gardens. The difference between medicinal marijuana and recreational marijuana has a lot to do with a compound called cannabidiol (CBD). This compound helps provide pharmacological effects that can aide patients suffering from cancer, AIDS, glaucoma, and other chronic-pain conditions. Medicinal marijuana plants are often bred to yield lower levels of THC and higher levels of CBD.

While the medical marijuana community might be exempt from I-502's rules, a new tax is currently being proposed in the Washington state House. If this passes, it will tax medical marijuana 25% in order to avoid an underground market for medicinal pot once recreational marijuana is legally sold. Finance Chair Reuven Carlyle wants to treat medicinal marijuana the same as recreational marijuana—especially when it comes to taxation. This would mirror voter approved I-502 for medicinal marijuana in the State of Washington and is not necessarily welcomed by marijuana advocates and patients who rely on medicinal marijuana for relief.

Marijuana Decriminalization Bills Continue to Advance in Four New States

Four states recently advanced marijuana rights this month. Hawaii, Maryland, New Hampshire, and New Jersey have all passed measures to reclassify minor marijuana offenses. This would decriminalize the offenses and make them punishable by only fines, with no criminal record, jail time, or arrests.

Hawaii

In Hawaii, the Senate unanimously passed Senate Bill 472 which would change marijuana possession from a criminal misdemeanor to an infraction. On March 14^th, this Bill was revised to cap fines at no more than $100 for violations for infractions of possessing 20 grams or less of cannabis.

Maryland

In Maryland, Senate Bill 297 was passed to significantly reduce penalties for non-medical use of marijuana. Under this bill, minor marijuana offenses would be punishable by only a fine of $100, instead of the current penalty of $500 and up to 90 days in jail. The bill will now go before the House on March 28^th at 1pm.

New Hampshire

New Hampshire House members recently voted in favor of House Bill 621 that would decriminalize marijuana possession offenses and make them an infraction, punishable by only a fine. Currently, New Hampshire's law punishes those found guilty of marijuana possession up to 1 year in jail and a $2,000 fine.

New Jersey

Assembly Bill 1465 took one step further in New Jersey and now awaits action by the Senate. This would decriminalize possessing up to 50 grams of marijuana. Possessing up to 50 grams of marijuana is currently punishable by up to 6 months in jail, a $1,000 fine, and a criminal record .

The majority of voters continue to support pot reform and polls found that 6 out of 10 voters favored removing criminal penalties for first time marijuana possession offenders. Currently, 15 states have now decriminalized marijuana possession to a fine-only offense.

Washington Pot Bill Would Tax Premium Marijuana Strains

A bill is being introduced in the state of Washington that would tax marijuana brand names and trademarks. This bill was heard by the House Finance Committee and it calls for a marijuana tax of $3.60 per $1,000 on all trademarks, trade names, patents and copyright marijuana strains. This would be in addition to the 25% tax that will be assessed at each stage of the marijuana process, including the selling, growing, and processing of marijuana.

"I think that this reflects the uniqueness of the situation. What was the value of Marlboro as a trade name back when it was filed as a trade name or brand name?”

                                      ---Jeff Morris, Washington Democratic Representative

The bill specifies that this specific tax revenue would go into a special fund for agricultural research, specifically research for health benefits. Some of this research includes research that is currently being done at Washington State University to create plasma from wheat to make gluten-free wheat. Although Morris was quick to point out that this tax was not meant to replace state funding of research, only to enhance it.

At the present time, the amount of this tax's potential revenue is unknown, mostly due to the fact that this industry does not yet exist and the federal government may still block Washington's pot law from actually taking effect.

New California Marijuana Bill Attempts to Regulate Medical Pot

A new bill has recently been introduced in California that would impose state control over their medical marijuana industry, which has been unregulated since 1996. Assembly Bill 473 was introduced by Assemblyman Tom Ammiano and it would create a new agency inside of the California Department of Alcoholic Beverage Control that would help to regulate medical marijuana. This new department, known as the Division of Medical Cannabis Regulation and Enforcement, would be responsible for regulating the growth, supply, and sale of medical marijuana throughout the State of California.

At the present moment hundreds of thousands of legal medical marijuana patients depend largely on the rules and regulations of each city and county in California. This creates confusion since what is tolerated in San Diego is not necessarily tolerated in Los Angeles, etc. There are currently more than 50 local ordinances and a variety of laws throughout those ordinances. State regulation would bring continuity to the medical marijuana business and prevent confusion for law enforcement officials and patients who require specific strains of medical marijuana. It would also set up a structure for statewide licensing fees.

“California has been in chaos for way too long. Cities have been looking for state guidance, dispensaries feel at the mercy of changing rules and patients who need medical cannabis are uncertain about how their legitimate medical needs will be filled.”

                                                Tom Ammiano, California Assemblyman

Ammiano is no stranger to the medical marijuana issues that California faces. He proposed a similar bill last year that passed in the House but eventually stalled in the Senate. His last bill, Assembly Bill 2312 had full support from medical marijuana patients, dispensaries, and advocates.

Washington Picks its First Pot Consultant

The State of Washington has tentatively chosen their new marijuana consultant. Mark Kleiman is a professor of public policy at UCLA and the head of Botec Analysis Corp. Botec has evaluated government programs in the past, relating to drug abuse, crime, and public health and provided in-depth analysis and consulting for these programs. Now, Kleiman and Botec will be responsible for advising Washington state officials as they attempt to develop rules for new legal marijuana laws.

Washington and Colorado made headlines last year when they became the first states in the nation to pass laws legalizing the recreational use of marijuana. They are now in the process of setting up rules and systems for state-licenses growers, processors, and retail stores. This also includes developing rules for marijuana taxing. According to the Associated Press, sales of marijuana are expected to begin at the end of 2013 at the earliest.

Washington State's Liquor Control Board is currently trying to determine how many growers and stores they should allow, how much pot should be produced, types of packaging, and the appropriate testing of THC content. Even while Washington gears up for its own pot industry, marijuana remains illegal under federal law and many wonder if the government will attempt to block the licensing schemes from taking effect.

‘‘Hopefully the feds will cooperate so Washington won’t be sending money down the drain,’’ 

                                      --Khurshid Khoja regarding the new pot laws

Some of Botec's responsibilities will be to cover quality testing to determine the appropriate levels of THC, statistical analysis of how much marijuana to produce, and development of regulations. He faces a daunting task, since marijuana has never been regulated or legal before in this country. If Washington State produces too much marijuana, then there is a risk of it being trafficked out of the state. Producing too little marijuana results in a dangerous spike in the black market. 

Author of Pot Law Downplays War on Weed

The author of Washington's new legal pot law said that there is really nothing new about 8 former DEA chiefs' demands to nullify the new pot laws in both Colorado and Washington. Alison Holcomb said that these are the same arguments that she has been hearing for years and some are accusing these DEA chiefs of irrelevant meddling in the state's affairs. While these arguments may be nothing new, a bigger issue looms on the horizon for these two states: how to respond to legal marijuana for adult recreational use.

According to the federal government, marijuana is a dangerous and illegal drug that has no medicinal value and should not be used either recreationally or medicinally. In addition, a United Nations drug agency recently urged the U.S. to fight legalizing marijuana in these states because it directly violated international drug treaties.

If the federal government tries to challenge Washington's legal pot law, then State Attorney General Bob Ferguson said that he is ready to fight and respond legally.

"I understand their perspective, but my job as lawyer for the state is to uphold Initiative 502 and that's what I intend to do."

                   --Washington State Attorney General Bob Ferguson

For now, legislators and Washington residents await U.S. Attorney General Eric Holder's decision on how the federal government will respond to adults who choose to use legal marijuana recreationally. His decision is imminent and is expected to be announced sometime this month.

California Voters Strongly Support Legalizing Marijuana

California is currently the state with America's largest medical marijuana industry and it looks like California voters would like it to stay that way. A California Field Poll released in February 2013 showed that voters strongly support the existence of medical marijuana dispensaries. In addition, they favor legalizing marijuana for recreational use and would like the federal government to stay out of California cannabis businesses all together. In fact, 67% of Californians oppose an ongoing crackdown on businesses who are selling pot for medicinal use.

This poll's results come at a time when the California State Supreme Court is deliberating on whether cities and counties in California have the right to ban marijuana dispensaries or not. This poll also comes only three months after Colorado and Washington both passed measures to legalize marijuana.

"This poll…heartens me and makes me feel validated"

          --Steve DeAngelo, Director of California's largest medical marijuana dispensary

However, California's four U.S. attorneys do not seem to feel the same way as their voters. All four have brought criminal cases against some of the medical marijuana growers and even sent threatening letters to several other growers in attempts to seize their properties.

Many believe that California politicians, who continue to oppose medical marijuana and its distribution in California, are going to see serious consequences at election time and that this poll demonstrates the growing public trend favoring legalizing marijuana.

"I think it shows that it's going to in in 2016, and it's just a matter of writing the best law that we can."

          --Richard Lee, Proposition 19

Hawaii State Senate Makes Moves to Decriminalize Pot for Personal Use — But will Fine Users with $1,000 Civil Penalty

Hawaii may be joining the ranks of Washington and Colorado in the decriminalization of cannabis, with its state senate unanimously approving a bill to allow personal possession if up to an ounce.

However, it's not entirely clear toking for those looking to get a little Maui in your wowie — the bill would fine those caught with pot for personal use $1,000. The fine would be a civil, not criminal, penalty, reports Honolulu TV station KITV.

 The rationale of the bill is that it would relieve the state's courts of their backlog of marijuana cases, while emphasizing that possession is still a crime. Despite the message the senate wants to send, law enforcement is against the bill and believes it will make enforcement more difficult.

Medical Pot to be Taxed Three Times, If Washington Law Passes

Washington state lawmakers are considering a bill that would apply a 25 percent tax at each of the growing, distribution and selling levels involved with medical marijuana.

Steve Schechter, owner of a dispensary, told the The Everett Herald that a an ounce of pot currently going for $280 in his shop would go up to $350 if the new law goes into effect. Schechter added that the price hike would price medical cannabis out of the reach of those who need it the most.

There's also no guarantee that the revenue will be put toward any research regarding pot, rather than being absorbed into the larger state budget.

The taxes are being proposed on cannabis flagged for medical use because without it, pot sold in dispensaries would be cheaper than marijuana sold for recreational use. Local and state sales taxes would also be charged.

Oregon Congressman Puts Name on Legislation to End Pot Prohibition, Allow Standard Business Deductions for Dispensaries

While many congressmen say something should be done about marijuana, Oregon Representative Earl Blumenauer is taking up the cause of actual federal reform of marijuana laws, Politico reports.

Blumenauer, along with 13 other co-sponsors, introduced legislation that would allow medical marijuana use at the federal level and allow dispensaries to take deductions other business are allowed to take.

Though many states have OK'd the medical use of pot (most by popular vote), the federal government continues to shut down dispensaries on the grounds of violating drug laws and despite promises made by President Barack Obama that he would not make medical marijuana prosecutions a priority.

The IRS has ruled dispensaries are not eligible for standard business deductions such as rent and payroll. Without these deductions, a dispensary's tax rate could hit 75 percent.

"Frankly, the people in the federal hierarchy are in an impossible position," Blumenauer said. "[This bill] gets the federal government and the Department of Justice out of this never-never land."

Pot Sells Out — MBAs Poised to Invade Legalized Marijuana Industry

Though the popular image of the medical marijuana grower and dealer is of a hippie eschewing anything to do with "the man," button-down Ivy League MBAs — for better or worse — are becoming the new face of legalized cannabis.

Seattle NPR affiliate KPLU profiles Privateer Holdings, which developed the Leafly website (known as the Yelp of medical marijuana). With the passage of legalized pot in Washington, the company's partners, Yale MBAs, have employed lobbyists to push legislators to allow large scale grow operations.

But that's not all — Privateer Holdings wants the cannabis industry to start taking cues from more mature agricultural markets. "If you go Nebraska, if you go to Lincoln, Nebraska and you look at corn there’s corn banks and corn insurance and agricultural supply houses and corn associations and high fructose corn syrup and there’s hundreds of sub industries around corn and all of those opportunities will exist in the cannabis industry," Brendan Kennedy, one of the partners, said.

However, other aren't so thrilled with the prospect of marijuana becoming King Cannabis.

Alison Holcomb, who spearheaded the Initiative 502 effort that legalized recreational pot in Washington and Drug Policy Director for the ACLU of Washington stated in a letter to the liquor control board, "Large industries that have large overhead and are interested in maximizing their profits are going to target their advertising in ways to promote marijuana use, not simply meet current demand where it currently exists."

Marijuana Dispensaries on the Vegas Strip? It's Becoming More Likely

Las Vegas' State Senator, Tick Segerblom is proposing Nevada OK cannabis dispensaries for patients with a recommendation and a card, the Las Vegas Sun reports.

Unlike California's dispensary model, which is mired in questions of profit vs. non-profit status, Segerblom spelled out how he saw Nevada embracing access for patients. The Gaming Control Board, which now strictly oversees the state's casinos, will be given jurisdiction over the dispensaries.

Segerblom added, "We’re going to have places you can go with a card where you can legally purchase marijuana. It’ll be a for-profit. It won’t be a co-op. It won’t be run by the government… It’ll be taxed and the revenue will be used to do something good. Those are the details we haven’t gotten to yet." 

Nevada's current medical marijuana law has many legal ambiguities and the state's supreme court is expected to take up the issue. Establishing a dispensary system is a step toward clarifying the law.

"Let’s go back and do what we should have done 10 years ago. It’s something that it’s time has come. Colorado has it. Arizona has it. California has it. Oregon has it. Washington State has it. We’re surrounded by it," Segerblom said.

California Takes a Look at Zero Tolerance Drugged Driving Law, Reveals Potentially Confusing Implementation

California State Senator Lou Correa is proposing a "zero tolerance" law for drugged driving. Correa describes the bill as an expansion of existing drunk driving laws, reports KPBS.

The proposed bill would outlaw any levels of Schedules I through IV when anyone gets behind the wheel. This would include illegal drugs to over the counter drugs like non-drowsy cold and allergy medicine. (You can see where this is going, don't you?)

The proposed bill also makes no distinctions regarding medical marijuana. The debate surrounding Washington state's legalization put the spotlight on how long THC remains detectable in the body — which current research pegs at a month.

Think you'd be safe with a bona fide prescription for traditional pills and not a recommendation for cannabis? Think again. The law would make criminals out of anyone with any medication or drugs in their system, regardless of recommendation or prescription.

Opponents of the bill are calling for an impairment test instead of a "zero tolerance" law.

Think there's too many pot shops in Los Angeles? Consider the Alternative — One Dispensary for an Entire State

Though many might bemoan the number of dispensaries in Los Angeles, San Francisco and Seattle, an article by The Daily Beast highlights what life is like on the other side of the spectrum.

New Jersey has one medical marijuana dispensary to serve over 1,000 patients for the entire state. But that's not to say Greenleaf Compassion Center takes care of all the patients in the state — there's many others that are suffering that the dispensary can't accept because it doesn't have the inventory.

Marta Portuguez, who suffers from 11 ailments, including fibromyalgia and gastroparesis, told the website, "I keep waiting for them to call. I have my card. I’m ready to go. I passed...This is my body. I should be able to obtain any medicine that I deem OK for me. This is not the government’s right to decide!"

Many have claimed that New Jersey Gov. Chris Christie has intentionally skewed the medical marijuana regulations to intentionally ensure that it's nearly impossible for any new dispensaries to open. Christie has also appointed an ex-law enforcement officer known to be hostile to the idea of dispensaries to oversee the program.

Dr. Jeffrey Pollack, one of 199 doctors in New Jersey who can recommend cannabis to patients, added, "They’ve done everything to make the system fail in the long run."

Washington Likely to Seek a Firm for Pot Consultant Job — Feel Free to Scratch Your Head Now

Over 100 people applied for the pot consultant positions offered by state of Washington. These experts will establish regulations regarding growing, processing and selling marijuana in a legal marketplace, with knowledge of the current underground prices for pot.

But despite being overwhelmed by former medical marijuana and black market cannabis dealers gone straight who would know about the realities of pot, there's a very good chance that none of them may meet the state's requirements for a consultant.

If you have an MBA and have a consulting firm, like Deloitte and Touche, Ernst and Young and KPMG, you probably will qualify for this job...because if there's one thing huge business consultant firms can do, it's offering advice about legalized pot. And firing people.

Valerie Bauman, a staff writer with the Puget Sound Business Journal who's been following Washington's search for consultants, wrote (emphasis ours), "During my coverage of I-502, I’ve received a number of emails from readers who wanted to apply for the job of marijuana consultant. Unfortunately, no such job for an individual exists. The state is looking for a team or a firm – or a combination of companies – to submit a proposal for the consultant work."

Federal Judge Rules Against Oakland and World's Largest Medical Pot Dispensary; Not All Legal Avenues Exhausted

A federal judge rejected Oakland's attempt to defend the Harborside Health Center, considered to be the world's largest medical marijuana dispensary, the Los Angeles Times reports.

Cedric Chao, an attorney representing Oakland, challenged the federal government's crackdown on medical marijuana dispensaries, legal in California through a voter initiative. U.S. Magistrate Judge Maria-Elena James found no legal grounds for the city's action.

If the dispensary closes, Chao argued, its 108,000 patients will be forced to illegal avenues to secure their legal medical marijuana, which would lead to a public health and safety crisis.

However, not all of Oakland's options are exhausted. Oakland also challenged the federal government using the Administrative Procedure Act. Federal regulations follow the letter of the Administrative Procedure Act's law.

James ruled that Oakland did not fulfill the legal procedures to file a suit under the act.

States Attempt to Sort Out Driving While High Laws — But Are Finding Out Marijuana is Not the Same as Booze

Mother Jones takes a hard look at an issue that's coming to light as medical pot use is on the rise and many states consider legalization: driving while high.

Medical marijuana advocates in Washington derided I-502 before it passed because of its low THC threshold for impaired driving (5 nanograms per milliliter of blood) and that research has shown that THC persists in the body up to a month after ingestion in sizable amounts. Nevada and Ohio have taken a harder line at 2 nanograms, and others have enacted zero-tolerance laws.

While these laws are rooted in drunk driving policies, marijuana researchers have discovered driving while high is not the same as driving drunk.

Jan Ramaekers, a marijuana researcher, said, "The reality is that alcohol and cannabis are two very different drugs that affect people in very different ways."

High drivers tend to slow down and leave room around them while driving, which is the opposite of boozed-up drivers who speed and are overly aggressive. This does not mean high drivers are safer drivers — they're still two to six times more likely to be in accidents.

Democratic Administration Continues to Arrest Increasingly Unionized Marijuana Workforce

The New Republic examines the connection between labor and the medical marijuana and burgeoning legalized pot business. Despite the usually strong bond between the Democratic party and unions, the Obama administration's Department of Justice has continued to incarcerate dispensary workers and seize the assets of the owners.

This is despite the fact that those that work behind the counter in the medical cannabis industry are increasingly unionized by the United Food and Commercial Workers and that he proprietors of those businesses fully support their employees' right to organize. Medical marijuana is one of the few bright spots for unions, which have faced decreased membership.

The hippies usually associated with the access movement are inclined to allow unionization, while the newer, business-minded owners see labor as a way to legitimize their business.

The organization efforts of the UFCW also helped move legalization from a fringe issue, which historically had little attention and a negligible chance of passing, to a mainstream political cause that passed in Washington and Colorado as well as getting 45-plus percent of the vote in California.

Potential State-Sanctioned Pot Consiglieres Meet with Washington's Liquor Control Board

Though the call for consultants knowledgeable in all aspects of cannabis cultivation, processing, distribution and pricing seemed outrageous, about 75 people met with Washington state officials to learn more about the contract, the Puget Sound Business Journal reports.

Though pot use is legal for those over 21 in Washington, the state now has to deal with the actual administration of the law. To assist the Liquor Control Board with establishing rules and regulations for pot, Washington put out the call for consultants.

Those that showed up expressed concerns that bidding for the consultant position would be violating the state's conflict of interest laws. Those who would want to consult would also want a stake in the market — which would ultimately take many qualified candidates out of the running.

Others were worried about incriminating themselves, especially in light of the federal government leaving the door open to arrests of those involved in Washington's marijuana industry (despite being legalized).

However, many others felt they were already known to state and federal law enforcement because of their long history in growing, processing and distributing pot.