I-502 Consulting Services to Washington State Liquor Control Board: Update from the Bidders Conference

A crowd of approximately 100 attendees sparsely filled two large ballrooms at the Tacoma Convention Center as potential bidders asked questions pursuant to contract K430 for Initiative 502 consulting services for the Washington State Liquor Control Board (WSLCB). I-502 is the initiative which passed in November 2012 legalizing recreational marijuana use in Washington State. The WSLCB issued a request for proposals to support implementation of four key areas of I-502 on January 17th, and the bidders conference was held January 30th; all bids are due by February 15th.  Attendees asked questions of the WSLCB and took advantage of the opportunity to network with each other in anticipation of finding or filling sub contracting opportunities

Bidders Conference for Contracting Services for I-502 Implementation with Washington State Liquor Control Board

The state contract K430 (which Mr. John Farley, a contract specialist with the WSLCB, occasionally referred to as 'K420' in an adorable Freudian slip) will ideally be awarded to one main contractor who will undoubtedly require the support of some sub-contracting services, given the unprecedented nature of the I-502 initiative.The state's strong preference for hiring one main consultant versus four different consultants for the different categories of expertise makes sense given the tight timelines required to make the deadlines stipulated in the text of I-502.

The four categories of expertise sought by the WSLCB are:
- Product Industry Knowledge
- Product Quality Standards and Testing
- Product Usage and Consumption Validation
- Product Regulation

Due to obvious conflicts of interest, the winning contractor will not be eligible to apply for producer, processor or retailer licenses under I-502 during the time they are under contract with the WSLCB. A number of strong candidates for one or two of the categories were present, but it seems clear that a team will need to be assembled with members who have expertise (and who meet the minimum qualifications) in each of the four categories of expertise. A number of small to mid-sized consulting companies were present, along with a handful of experts in analytical testing services, lawyers and an assortment of cannabis cultivators.

The Federally illegal nature of marijuana presents unique issues for a state contract, as some of the most qualified candidates have ancillary baggage such as felony convictions or other inconveniences. There were thought provoking questions like "my cannabis testing facility was raided by the Feds in 2011...as a non-profit under investigation by the FBI, can I apply using my existing business license, or should I apply for a new one?" One gentleman present presented me (a potential bidder on the K430 contract) with a photograph of his graduating class from Oaksterdam University as his credentials for sub-contracting opportunities.

Members of the WSLCB seem genuinely interested in making I-502 succeed. Mr. Farley was absolutely believable when he told the audience "we want you guys to be successful - we don't want you going to jail for doing what the LCB has asked you to do". Of course, just because the WSLCB wants to see successful implementation of I-502 doesn't mean the Federal government isn't going to get their knickers in a knot once licenses start getting issued and things start happening. There are absolutely no guarantees of how the Federal government will act over the course of I-502 implementation. Perhaps President Obama, an alumnus of the Choom Gang, will take the opportunity of his final term in office to address re-scheduling of Cannabis (from a Schedule I drug to anything else). Only time will tell - but the tide is turning in favor of marijuana legalization and Washington State seems to have the needed support of local legislators.

------------(c) 2013 Stoner Living Blog

This article may be re-published with permission of the editor - stonerlivingblog@gmail.com
 

Mayor McGinn, I-502 and the Legalization of Cannabis: let's be good neighbors

The National Cannabis Industry Association (NCIA) held its first educational event in Seattle at the swanky Washington Athletic Club on January 28, 2013 with special guest Mayor Mike McGinn. While the mayor tried to play off as any other meeting with a trade association "like the Realtors or something", the press presence loomed large, making it difficult to ignore the historic nature of the post-prohibition business meeting.

Mayor McGinn: Advocate of the Legal Cannabis Industry and a Neighborly Guy

McGinn's message to the industry was positive, but also reinforced the importance of the industry being good neighbors to everyone else.  After all, 45% of the voters in Washington state voted against I-502. The mayor suggested that the best way to proceed was to be "really thoughtful of the concerns of others." And this would seem to include the concerns of the Federal Government. McGinn was excited - almost exuberant - as he spoke about the possibilities of the legal marijuana industry. He gushed about the local music scene and the new micro-distilleries springing up across the state. But as much as he wanted to share the wealth, he did caution that cannabis tourism touched on interstate tourism (and other stuff squarely in the camp of the Feds) and that avoiding such sensitive areas was the best way to avoid the attention of  the Federal government.

Some of the folks in McGinn's camp seem ready for any such Federal showdown. One such ally, representative Roger Goodman (D, Kirkland), an attorney, stood by during the question and answer session to assist McGinn with questions. He said he was willing to argue the case before the US supreme court, if needed.

McGinn was the first mayor of a major US city to come out in support of full on legalization of marijuana. As he explained it, he didn't even realize the pioneering nature of his stance; while running for office he made some statement about how if everybody who held office that had ever tried marijuana was to vote for legalization it would be legal. It didn't come up again until after he was elected.

A few points were clarified throughout the evening. Vending machines will not be allowed under I-502. Existing medical marijuana vendors will not be grandfathered in and issued retailer's licenses (they won't necessarily be excluded, but they aren't guaranteed a retail license). Existing dispensaries not adhering to the 1000 foot rule specified in I-502 are not exempt from the 1000 foot rule, so the opening of retail 502 stores may bring enforcement to non-compliant medical vendors.

Overall, the tone of the evening was positive and upbeat. McGinn took time to marvel at how quickly legalization of cannabis was progressing. He realized that we have arrived at a "new normal". McGinn, a resident of Greenwood, remarked on the proliferation of medical marijuana dispensaries in his own neighborhood. "They're really putting the green in Greenwood."

Crowd at NCIA Meeting with Mike McGinn

During opening remarks, Aaron Smith of the NCIA reminded attendees that "before it was an industry it was a movement". McGinn encouraged attendees to let the progressive values of Seattle help shape the new legal cannabis industry. He called out the traditional values of Seattle - local, crafted, authentic, small provider/not big chains, no GMO, fair trade - and called on the founders of the new industry to use the values that shaped our local heritage as we create the world of legal cannabis.

As the mayor himself said,  "We can't ask for anything else but to be good neighbors".

--------------- (c) 2013  Stoner Living Blog

I-502 Public Forum on Marijuana Producer Licenses Packs City Hall

The public forum on the licensing of marijuana producers and processors had an overflow turnout at Seattle's City Hall on Thursday night, January 24th, 2013. The crowd filled the Bertha Knight Landies room to capacity and extra seating was provided in the city council room upstairs with video viewing of the proceedings. Representatives from the Washington State Liquor Control Board greeted the audience and made it clear this was a 'public forum' - not a formal rules making session - and that they were in 'listening mode'. Sharon Foster, chair of the board, kicked things off by thanking the public for their interest and noting how unusual it was for any meeting to have such robust attendance (indeed, they seemed to have to scramble to arrange the overflow seating area as such heavy attendance was not anticipated).

Crowd at I-502 Public Comment Meeting at Seattle City Hall (January 24, 2013)

Members of the WSLCB present seemed ready to take on the daunting task of overseeing the legalization of marijuana for the first time in modern history. They were engaged and respectful of the audience; their efforts to hold the lengthy list of speakers to their respective two minute limit was appreciated by at least this attendee as the session went from 6 PM to after 9:30 PM. Some of the board members present were Sharon Foster, Ruthann Kurose, Chriss Marr, Brian Smith, Samantha Trotter and Pat Kohler.

Key themes emerged throughout the evening. Some of the suggestions were not relevant given the nature of the initiative process and the process for changing provisions requiring a 2/3 legislative approval. The board members pointed this out politely at several parts of the evening. Some key themes emerged, and some points were clarified by the board.

Themes and Major Issues Addressed by Public:

• "keep it cottage" - don't cut out small scale production operations
• the whole world is watching
• address federal issues including federal tax filing guidelines needed
• regulated system must out compete black market to succeed
• processor license & tax step  - does it make sense*
• limiting plant numbers isn't a bad idea, most numbers were ~100-200 plants, up to 1000
• concerns about not letting major corporate entities dominate the market
• need for analytical testing of THC, cannabinoids, molds, pesticides
• banking, insurance and public safety service availability for producers/processors
• dont limit license #s
• drug war vetran amnesty for marijuana felons - allow them to participate
• recycling facilities for toxic grow bulbs
• being able to smoke in public (bar scenarios or sanctioned locations - not everywhere)
• more research needed on per-se DUI laws
• info on interactions with other pharmaceuticals (antidepressants, antipsychotics) requested
• a special license class type may be needed for research/breeding operations
• clarification on medical industry status

One of the themes repeated often throughout the evening was brought up by the first public speaker, Richard Dent, whose message was 'don't forget the little guys.' The cottage industry nature of the Washington marijuana scene was evident in the large number of ma-and-pa operations represented at the meeting, which may come to a surprise to some who believed the marijuana market to be dominated by gang and mafia type interests. That was certainly not the impression given by the room tonight. The famous producer Uncle Mickey summed it up when he exhorted the audience to "remember the love - this is not about money."

But, of course it is about money too - and getting along with the Federal Government, and paying taxes and a bunch of stuff less sexy than love. But passion, expertise and a lot of optimism filled the room. There were collective owners, cultivators, medial patients, lawyers, an addiction medicine specialist, entrepreneurs and more than a few veterans of the drug war who wanted to make sure their dedication to the product they loved and their expertise would not be forsaken by the I-502 rules.

Valid concerns about clear guidelines for product testing and labeling products were brought up repeatedly. A number of interests representing testing services and associated groups were in attendance. Brad Douglass from The Werc Shop, a group providing quality control and analytical services to California companies (but contemplating an expansion into Washington) mentioned the scary fact that 20-30% of the product tested by his group found mold - and pesticide residues are a concern to smokers too. He pointed out that some pesticides go right into the smoker at smoking temperatures. Organic certification options were brought up by several speakers throughout the evening.

Concerns about privacy came up several times, both because of personal privacy concerns but also in the lens of a product category that is still against Federal law. Phil Bocel spoke to suggest implementing some of the new security registry technology being developed at University of Washington to protect citizen privacy while also allowing some sort of registry.

Bo Odyssey Recommends the Book "The Emperor Wears No Clothes"

Bo Odyssey, the legendary 'scarf guy' and regular at City Hall meetings made a few comments reinforcing the important role of hemp in American culture, and recommended Ed Rosenthal's book, "The Emperor Wears No Clothes" to the audience. There were several other citizens interested in industrial hemp concerns who spoke.

Concerns about the "inevitable Federal showdown", as Anthony Gibbs, an attorney, so eloquently put it, also came up repeatedly. Late in the evening, a comment was made that the States Attorney General Ferguson is drafting some sort of state lawsuit to defend Washingtonians in some way - details will surely follow.

The wonderful Dawn Darington, a medical marijuana patient advocate from Choice Wellness and a part of 'All Day Live' was there, bringing her indomitable spirit. She pointed out that humans were meant to be assoicated with the marijuana plant - the human brain has receptors for the compounds in cannabis. As Dawn pointed out, our brains have cannabinoid receptors, but we don't have cabbage receptors.

One positive note for producers closely following this was the clarification by board member Chris Marr that the current LCB interpretation of the initiative was that producers who were also processors would not have to pay the 25% tax step between producing and processing, unless the product was further processed. He said this interpretation was being reviewed by the Attorney General.

Note - this is a breaking news story, please email any corrections to stonerlivingblog@gmail.com

 ----------(c) 2013  Stoner Living Blog

I-502 Comment Period Open Rules for Marijuana Producer Licenses in WA State

Dear Concerned Marijuana Cultivators,

Now's the time to submit your input to help shape the face of the legal marijuana industry! Hearings about the I-502 'producer', 'processor' and 'retailer' licenses will be held separately. First up is producing...

This rulemaking will address rules regarding marijuana producer licenses and the requirements for those licenses as stipulated by I-502. Additional rulemaking will be filed at a later date to address the other new licenses created in the initiative.

I-502 Implementation

 The Liquor Control Board encourages you to give input on the rules. The Rules Coordinator will set up at least two meetings to collect stakeholder input prior to drafting proposed rules. As required by the initiative, rules for implementation of I-502 must be complete by December 1, 2013.

 Look for more information at http://www.liq.wa.gov/laws/laws-and-rules under Proposed Rules.

The meeting schedules will be posted on the LCB website once the dates are established. The Washington State Liquor Control Board has entered into the initial stage of rulemaking to begin implementing Initiative 502 by writing rules to implement marijuana producer licenses and their requirements. You have a unique opportunity to stand up and help shape the future of marijuana legalization!

The procedure for establishing the "producer"license rules goes like this:

Following the comment period (which ends February 10, 2013), the agency will send out and publish proposed rules, establish a comment period on the proposed rules, and hold at least one public hearing before rules are adopted.

Public Comment on Producer Licensing: Now through February 10, 2013

e-mail:  rules@liq.wa.gov

By mail: Rules Coordinator 

Liquor Control Board
P.O. Box 43080
Olympia, WA 98504-3080

Don't miss your chance to be a part of history in the making! The Stoner Living Blog is not affiliated with the Liquor Control Board, but we do encourage our readers to make a difference by participating in the process.

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(c) 2012 Stoner Living