Thursday, June 27, 2013

WA Attorney General talks about marijuana legalization

Last month, the Brookings Institution hosted a public forum about the changing attitudes about marijuana policy.  Among the panelists was Washington State Attorney General Bob Ferguson.  In the clip of him speaking, he states that Washington is a laboratory of democracy when it comes to marijuana legalization and briefly discusses his communications with the United States Attorney General.


Mark Kleiman, whose organization (BOTEC) provides advice to the Liquor Control Board about marijuana policy, was also part of the panel.  He stated that we will learn a lot from Washington about the effects of marijuana legalization  over the next few years. 

Wednesday, June 26, 2013

Letters to the Liquor Control Board

Some of the letters sent to the Liquor Control Board regarding their initial draft rules for I-502 have been made public.  WASAVP's comments are available through the WASAVP's website.

Today, Washington Cannabis Wire published the letter from Representative Chris Hurst, Chair of the House Government Accountability and Oversight Committee.  In it, Rep. Hurst discusses several concerns related to public safety.  Here are a few excerpts:

Security Concerns
My gravest concerns focus on the inadequate rules regarding security, the lack of prescreening of applicants, disclosure of non-conviction drug related activities, and the reliance on a non-prescreened lottery system to choose applicants. 

At a page and a half, the rules regarding security create few minimum standards for placement or types of equipment to be purchased and installed by licensees. By not setting minimum standards, the equipment purchased by licensees will prove to be inadequate in assisting LCB enforcement officers or police officers in their investigations.

Screening of Licensees
. . . the LCB should require pre-applicants to document that they are sufficiently capitalized to start the business.  Other pre-screening precautions that should be implemented include; requiring a sizable safety deposit with the LCB and other ways to prove that their operation will be insurable when a license is granted. No one should be allowed to even put in for the lottery without demonstrating that they have a commitment for insurance sufficient to fully cover their anticipated liability for these operations. 

Criminal Convictions
Finally, the LCB should go beyond a requirement to disclose criminal convictions and require full disclosure of all prior illegal drug manufacturing or distribution activities for the past 10 years; whether or not there have been convictions for those activities.

The Association of Washington Cities' comments are available on their website.  Among their comments:

Licensees Should Abide by Local Laws
The most important issue that must be addressed in the new rules is adding a clear requirement that all applicants and licensee must comply with all applicable local laws and regulations including but not limited to those related to licensing, taxation, health and safety, zoning and land use, environmental regulations, and permitting.  

Criminal Convictions
The rules should be clear that criminal history includes both in-state as well as out-of-state convictions. 

Number of Marijuana Businesses
The rule references the number of licenses permitted, but has not yet identified how that number will be determined.  Cities need to better understand how that number will be developed and how the distribution will be implemented.   

Hours of Operation
The hours of operation from 6am to 2am seem to be modeled after liquor retailers, but since these will be stand-alone stores with no onsite consumption it seems unnecessary to have lengthy hours.

Liquor Control Board Enforcement Responsibility
. . . objections by the public to a license renewal will be referred to the local jurisdiction for consideration.  However, we strongly believe that as the licensing authority it is the LCB's responsibility to investigate and respond to objections raised by the public about any licensee.  Any other approach would be an attempt to transfer responsibility to the local jurisdiction which lacks any direct authority over licensees.  

Cost of New Laws
We continue to be concerned about the local impacts implementation of legalized marijuana will have on cities particularly in the area of law enforcement.  Cities agree with the assessment that the legal market will only work if there are adequate controls in place and effective enforcement against the black market.  To that end, we believe that there will be a need for financial resources provided to the local jurisdictions to help with that enforcement.  We hope to work with the Board and the Legislature to secure that financial support.

Finally, the Seattle City Attorney's letter includes the following comments:

Promote Pot Tourism
We also support the Board's decision to permit nonresidents to purchase one ounce of marijuana at a retail store.  People travel to Washington for many reasons, and tourism is a significant industry within Seattle and throughout the state.  We want tourists to enjoy our beautiful outdoors, fresh produce, microbrews, fine wines, professional sports and entertainment.  We should similarly embrace marijuana tourism.  However, retailers must not oversell to non-residents so that marijuana might be taken across state lines.  I-502 does not prohibit nonresidents from traveling to Washington, purchasing marijuana from a licensed retailer, or consuming marijuana in the state, but we support Governor Inslee's promise that Washington State will not become "the country's export market for marijuana."  We need a strong partnership with law enforcement to extinguish the illegal market and properly regulate the new legal market. 

Public Consumption
I-502 prohibits opening "a package containing marijuana . . . in view of the general public."  It is not clear whether this limits marijuana use only to private residences or also allows it in establishments that may be private and not "in view of the general public" because the phrase "in view of the general public" is not defined in I-502.  For renters and tourists, allowing marijuana use in certain types of establishments other than private residences may be the only mechanism to enjoy marijuana.  This is both a race & social justice and an economic development issue.  Renters and tourists should not be forced to use marijuana in parks or on sidewalks.  We recommend that the Board study private clubs or similar accommodations and propose appropriate rules governing their establishment and regulation.  

Home Delivery
A careful reading of I-502 suggests that bicycle and truck deliveries are neither expressly permitted or prohibited.  We recommend that the Board study delivery services and propose draft regulatory rules.  

Outlet Density
If like state liquor stores there will only be a limited number of retail stores, we may want to ensure better geographical coverage.  

Cost of New Laws
Finally, local governments must be able to share in the State's revenue.  Implementing and enforcing I-502 will be a costly venture for government at all levels from business licensing and zoning to law enforcement and other public health and safety considerations.

Monday, June 24, 2013

Notes from Liquor Control Board work session

The Liquor Control Board held a work session last week to discuss public comments about the initial draft rules for a legal marijuana marketplace in our state.

At the beginning of the meeting, LCB members noted that after the draft rules are released on July 3 they will host four public forums for comments and that rules established this year are not "final and forever".  Just like liquor rules, it is expected that marijuana rules will change over time.

Both LCB members and staff stated that it is important for people to read I-502 and proposed rules.  Some comments seem to have been made by individuals/organizations unfamiliar with the initiative and the initial draft rules.

Karen McCall, Rules Coordinator, provided the LCB with a summary of the more than 800 comments they received.

From local jurisdictions (22 comments)

  • Revise some definitions;
  • Limit hours of sale;
  • Businesses must meet all local jurisdiction requirements and laws;
  • Advise them of the number of licenses that the LCB will be allowing in their jurisdictions;
  • Ban drive-thru stores, Internet sales, and home deliveries;
  • Ban products that appeal to youth;
  • Mandate child-proof packaging;
  • Allow jurisdictions to opt out of allowing marijuana businesses (law change needed);
  • Ban marijuana advertising.

The Seattle City Attorney requested that the LCB allow private marijuana clubs for tourists and to allow for home delivery of marijuana.

From substance abuse prevention advocates

  • Revise some definitions;
  • Locate stores similar to where liquor stores were located prior to I-1183;
  • Ban all advertising;
  • If advertising allowed, ban ads attractive to youth;
  • Ban home deliveries and Internet sales; 
  • Include hotline information on packaging;
  • Ban products that appeal to youth;
  • Cap grow sizes;
  • To buy marijuana people should have a WA identification;
  • Mandate a Responsible Vendor Program.

From stakeholders

  • Allow outdoor grows;
  • Allow extracts (law change needed);
  • Security requirements are excessive;
  • Home grows should be allowed if they were established before I-502;
  • Packaging requirements are excessive;
  • Residency rules are too stringent;
  • Controlling THC levels is unreasonable;
  • Producer licenses should be issued to current farmers first;
  • Third party transportation of marijuana should be allowed; 
  • Allow Internet sales;
  • Keep grow operations small.

At about 1:17:00, Board member Chris Marr asks questions about "big marijuana".

Watch the entire meeting:


Update June 25: If unable to access the video, listen to the work session on the Liquor Control Board's YouTube channel.

Tuesday, June 18, 2013

Liquor Control Board to conduct I-502 public comment work session on June 19

From the Liquor Control Board:


Tomorrow, on June 19, the Washington State Liquor Control Board (WSLCB) will conduct a work session during which WSLCB staff will summarize and present the public comments received regarding the I-502 initial draft rules to the Board. As the Board recently concluded its public input period on the initial draft rules, the Board will not be accepting public comment during the work session.

TVW is tentatively scheduled to live stream the work session on its website at www.tvw.org. It is also scheduled to be filmed for TV to be aired at a later date. In addition, audio of the work session will be posted to both the agency website and YouTube channel as soon as possible. 

Time/Location:
I-502 Public Comment Work Session
1:30 p.m.
WSLCB Headquarters

Marijuana labeling

Earlier this week, KING-5 broadcast a story about what marijuana labels may look like . . .

                       

Monday, June 17, 2013

Liquor Control Board's advice for potential marijuana licensees

Last week the Liquor Control Board released the following advice:


This notice is to give you a courtesy heads up on some things you should be considering, preparing or actively doing now if you are interested in applying for a producer, processer or retail license.

First off, the Washington State Liquor Control Board (WSLCB) will not be accepting license applications until mid-September. Under the current draft rules, the WSLCB will open a 30-day application window for all license types. However, there are steps you can take now to lay the groundwork so that you are ready by September.

The below Top 10 list includes suggestions for things that you can do now to prepare. Applying for state licenses may be the easy part. Potential applicants must also be in compliance with other state and local laws and regulations.  

10 (Know the Law and Rules)
The best place to start is reading the summary materials available to you on the I-502 section of our website. In addition to the full text of the initiative, there are summaries of the law and rules as well as answers to frequently asked questions.

The WSLCB issued initial draft rules on May 16, 2013. The WSLCB is scheduled to file official draft rules July 3, 2013. These rules will include the input we have received since May 16.

9 (Consider consulting an Attorney)  
Have you consulted with an attorney or other business consultant on the potential risks and rewards? Marijuana remains illegal under federal law. Know your risks in advance. A state license is not insurance against federal prosecution. Governor Inslee and state Attorney General Ferguson have reached out to the Department of Justice (DOJ) to seek clarification regarding the federal government’s policy going forward for Washington and Colorado. As of this writing, the DOJ has said that it will provide clarification soon.

8 (Tightly Regulated System)
The Board has been clear from the beginning that its goal is to create a tightly controlled and regulated system to prevent diversion. There are strict regulations and subsequent associated costs. Do you have the necessary capital or financing to meet the start-up and operating costs? Under the current banking and money laundering laws, financial institutions will not lend money to marijuana-related businesses.

7 (Criminal History)
Do you and any potential partners qualify? Under the initial draft rules, the board has made allowances for two misdemeanor convictions for marijuana possession. However, an extensive or violent criminal history will likely prevent you from getting a license.

6 (State Residency)
Have you, your partners and your financiers resided in Washington State for three months? That is a requirement in both the law and the rules. The initial draft rules spell out the residency requirements and the necessary proof for application. You would need to have started living in Washington State by mid-June if you want to apply when the application process begins in mid-September.

5 (Communicate with Your Local Government)
Have you talked with your local government (county, city or port) about your plans? Are there business license requirements or zoning restrictions? Local jurisdiction requirements vary.

4 (Special Use Regulations)
Are there environmental or special use permits required? Growing marijuana is agriculture which typically has specific requirements for production, wastewater, etc. It is the same thing with processing. Depending on your process methods there may be associated state or local regulations that govern them.

3 (Location, Location, Location)
You need a location in order to apply for your license. Initiative 502 specifically prohibits locations of any license type within 1,000 feet of the perimeter of an elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, library, or arcade that is not restricted to persons at least age 21. These restrictions can make it difficult to find an appropriate place to locate your business.

2 (No Surprises)
Under the initial draft rules, the landlord or property owner must sign an attestation that he/she is aware that the property being leased will be used for production, processing, or retailing marijuana. Have you communicated with a potential landlord about whether they are willing to sign an attestation?

1 (Learn about the Application Process)
A marijuana producer, processor or retail license will be an endorsement on your Business License which is administered by the Washington State Department of Revenue. A $250 application fee per marijuana license type must be included with the application. There may be other licensing fees that are due depending on your residence, along with the Business Licensing Services (BLS) handling fee.

Due to the special circumstances of the 30 day application window for marijuana licenses and to ensure that applications submitted on time are accounted for, the application for the marijuana licenses will not be available to be processed online.  It will be paper-based only. However, you will be able to initiate the application at any Washington State Department of Revenue office.

After you submit your marijuana license application, the WSLCB will take you through the licensing process and ultimately decide whether to approve or deny your application.

Conclusion
This is the latest in our ongoing effort to help keep you informed of the WSLCB’s efforts. We hope this helps in your planning to be part of Washington’s emerging and historic recreational marijuana market. Thanks.

Wednesday, June 12, 2013

WASAVP calls for ban on marijuana advertising

In written comments to the Liquor Control Board regarding their Initial Draft Rules for the new commercial marijuana marketplace in Washington, WASAVP calls for a ban on marijuana advertising and free samples.

What currently is happening with medical marijuana provides a perfect example of what WASAVP does not want to see happen. The coupon below was included in ValPaks received in the mail by Puyallup-area residents and not only advertises marijuana but offers free marijuana to new customers.

Twenty-four percent of drug violations in Seattle were for marijuana in 2012

KOMO News reports that, according to Crime in Washington 2012 Annual Report, 26.4% of drug violations in the City of Seattle were for marijuana. 

According to the news report:

The majority of (Seattle) drug violations, 36.1 percent, were for crack cocaine. But, marijuana wasn't far behind with 26.4 percent. Only 0.03 percent of drug violations were for PCP. Whitcomb said the high amount of marijuana-related offenses are due to the way the state tallies those numbers. For example, the Seattle Police Department would count a bank robber arrested with marijuana on him as a robbery offense, while the state numbers count it as both a robbery offense and a drug offense.


This is similar to what Seattle Mayor McGinn said in 2010 when asked about marijuana-related arrests:  

Most police contacts involving marijuana occur because of an unrelated offense. For example, of the incident reports filed between January 1st and April 30th of this year, there were only eighty that cited possession of marijuana. Of these:  

• 17 (21.3%) involved 911 calls for service. 7 were for narcotics complaints, meaning someone called 911 about drug-related activity and that drug turned out to be marijuana. 10 of those were dispatched calls for non-narcotics complaints like fighting, trespassing, or someone behaving erratically and blocking traffic and marijuana was discovered subsequent to the arrest. While enforcing marijuana laws is our lowest priority, responding to our community is our highest priority. 14 (17.5%) involved the serving of warrants. That is, officers encountered someone with an outstanding warrant, searched that individual, and discovered marijuana.

• 20 (25%) involved a traffic stop. Even under the most liberal legalization proposals, driving under the influence of marijuana would remain illegal, so when an officer stops a vehicle and smells pot, a search is clearly justified.

• 12 (15%) involved a High Drug Enforcement Area. These are areas of our city which see a high volume of drug trafficking, and have been targeted for heavy drug enforcement. When a cop sees a hand-to-hand sale, it’s not always obvious what drug was sold until they make the stop. Additionally, street-level dealers of heroin or cocaine often deal marijuana as well. Thus, marijuana shows up in the incident report.

• If you remove those four factors, you are left with 21 of the 80 incidents. Of the 21, all but six were incidents in which the officer stopped the suspect for a reason other than marijuana, and discovered marijuana incident to the arrest. Those six remaining incidents all involved individuals openly smoking marijuana in front of a police officer.

Which begs the question, will the implementation of I-502 really reduce marijuana-related violations and arrests in Seattle? 

Tuesday, June 11, 2013

WASAVP submits comments to the Liquor Control Board about initial draft marijuana rules


Public comments about the Liquor Control Board's Initial Draft Rules for implementing Initiative 502 were due yesterday.  

WASAVP submitted comments to the Board highlighting the need to strengthen public health and safety provisions.

The ACLU also submitted two sets of comments -- one set in collaboration with a group of prevention, intervention, treatment, and child advocacy organizations and individuals and one set in collaboration with a group of organizations representing minority communities.  

The Seattle P-I posted comments from Seattle City Attorney Pete Holmes who campaigned for I-502.  The Washington State Cannabis Wire posted comments from a marijuana business group.  

The Board will now review all comments and will follow the timeline below for issuing the new rules.  

Timeline
June 19, 2013             Board work session on proposed rules;
July 3, 2013                Board files official draft rules (CR 102) with the state Code Reviser;
August 7, 2013            Public hearing on draft rules;
August 14, 2013          Board adopts rules;
September 14, 2013    Effective date for rules; and
September 14, 2013    WSLCB begins accepting applications for all license types.

Thursday, June 6, 2013

Marijuana legalization and drug trafficking

Earlier this week, KING5-TV broadcast this story about the effect of marijuana legalization on federal law enforcement and Mexican drug cartels.