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Washington Cannabis Exchange Files Corporation Papers, Hires Lobbyist

In December, we reported [article link: https://washingtonstatewire.com/blog/cannabis-wire-what-do-tuna-tulips-and-cannabis-have-in-common-state-regulated-cannabis-exchange-proposed/] that Businessman Albert Harrison will propose the creation of a clearinghouse, or commodity exchange type of system for the “farm to user” product stream rules to the Washington State Liquor Control Board (LCB).

The entity, Washington Cannabis Exchange Inc. (WCE) will be filed with the Secretary of State’s office later today. Harrison has revised his original plan, but basically he and his lobbyist will be working to convince the LCB to include in their rules for functions under I-502, a general provision for a clearinghouse for cannabis product for recreational growers and processors. He adds that Medical Marijuana (MMJ) growers and processors may also want to use the system for validation for their product, but the exchange probably should not require MMJ product to pass through the clearinghouse.

Due to constitutional restriction of “special legislation” there are few conditions under which a private corporation may be designated or “appointed” in rule or statute. Washington Cannabis Exchange, Inc. might be the lead advocate, but if an exchange is provided for in the new I-502 rules, there will need to be an open and competitive process for the LCB to designate and grant authority for a company to act as the state’s clearinghouse for all recreational cannabis products. There will be no guarantees for the WCE.

Veteran lobbyist, David Ducharme, will file an L-1 form this week for his new client, Washington Cannabis Exchange. In a telephone interview from the State Capitol, Ducharme acknowledged the challenges ahead with a new client, a new law, and diverse cannabis community watching every move the LCB makes. He said getting together with what is now a seven person and growing cannabis lobbying corps is one of his top priorities. “We will also need to get the concept out there so people understand the advantages of the exchange and the mechanics.” None of the other 17 MMJ states, nor the other recreational use state, Colorado, have anything even approaching the clearinghouse/exchange concept.

The LCB, which has already received hundreds of pages of written comments even before a draft rule is available will hold community forums around the state beginning with the first in Olympia on the 22nd of this month, at 6PM, at the LCB Headquarters, room 201, 3000 Pacific Ave SE, Olympia.


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