The Real Discussion

To the trained eye it was not the opposition, or the support or the strategic interests who sign in, “not wishing to testify”, all the time running around to the legislators sharing their real opinion. It was the way that the issues self-declared two sides of the cannabis business in Washington.

Sooner or later the long established medical marijuana, MMJ, community (which is anything but a monolith) will meet the recreational use regulatory platform at the corner of “Economy of Scale Avenue” and “Keep the Big Guys Out Boulevard.”

The backdrop for the showdown was the hearing yesterday in the Government Accountability and Oversight Committee, chaired by Representative Chris Hurst, D-Enumclaw the sole sponsor of HB 2000. The bill attempts to clean up some universally agreed problems with recently passed I-502, Washington’s recreational cannabis use initiative. Any change will take a 2/3’s vote of both chambers since they will be proposed within two years of passage of the initiative.

As one apple is added to the cart, another falls off. Well intended, Hurst has conducted hours of discussions with fellow legislators and Liquor Control Board, LCB, officials. He truly wants the law to accomplish its intent, which according to Hurst’s declaration during the hearing is to set up a production-to-retail situation that squeezes out the black market, provides safe and quality product to the recreational use market, provides both revenue to the state and operating revenue to the LCB, and puts in place a strong environment that discourages and controls use of cannabis by minors.

The problem is every issue had its distractions yesterday. The initiative codified a $1000 license fee. Most legislators feel it is too low for true market economics of retail cannabis, and will not produce enough cash for the department to accomplish the goals of the initiative. But Allison Holcomb of the Seattle ACLU, cautioned and reminded the committee that higher, more costly fees and licenses, or requirements of larger growing operations only direct the business to those with capital and means. And she went further to remind the committee that right now there is considerable cash in the black market. She tried to equate Washington’s boutique and micro-distillery and micro-brewery market with an ideal cannabis market. Committee members politely reminded the former defense lawyer that hard booze and beer were not illegal when the idea of micro operations first surfaced.

Ezra Eickmeyer of Washington Cannabis Association seemed to pile-on when he told the committee that a footage distance restriction for retail outlets from public facilities (schools, parks, etc.), essentially prohibits Capital Hill residence from buying cannabis locally. This leaves the retail game open to the established black market.

You Drive For Show and Putt For Dough: Time to Putt

So where does this leave the state and the legislature? Holcomb brought the raw meat to the discussion. Time will tell if they heard her or see it. The point is this: How does the state set up the full seed-to-sale platform, compete in the street with an established black market, send the appropriate signal to the feds that we will do it right, keep operations and product in the state, block access to minors, and not upset a thriving MMJ industry, with patients who need the product not for fun, but for life in some cases?

The hearing was the first printed decisions or proposed suggestions about operation and sales of recreational cannabis so far this winter. It was the ghost of Christmas future for the LCB who must start splitting hairs, picking winners and losers, and stop making friends and start making policy. This is going to get interesting.

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