Medical Marijuana Activists Fear For Their Industry In Washington State

The General

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After clearing an early pathway for marijuana legalization, medical cannabis activists are afraid their businesses could be swept under as Initiative 502 forces them to comply with new regulations designed with the recreational market in mind. The Seattle City Council voted last week to require medical and recreational marijuana businesses to apply for a marijuana license under I-502 regulations, which legalized recreational cannabis. The rule would place medical and recreational cannabis programs in the same channel, requiring them to obtain the same license, said Alison Holcomb, attorney for the state's American Civil Liberties Union and author of I-502. "The government is trying to control medical marijuana and load (those businesses) onto the Titanic that is 502 (licensing) and set it asail," said Steve Sarich, leader of the Cannabis Action Coalition. "That would eliminate medical and I-502 in one fell swoop. He said the medical marijuana industry doesn't want to be incorporated into the recreational market. Some think the government intends to wipe out the medical industry entirely, which would hurt medical cannabis patients, Sarich said.

City Council member Nick Licata says wiping out medical marijuana is not the city's nor the state government's intention and that the city council "wants to put pressure on state Legislature to do something. We knew if we set a deadline, lobbyists would work together to get the state government to do something. "Gov. Jay Inslee already has called on the state Liquor Control Board to take up the issue of medical marijuana in January. If medical marijuana were subject to the same rules as recreational licenses, medical dispensaries that have been in business since 2011 would suddenly have to comply with the new regulations. Those rules are significantly more stringent than those for the medical industry.

As signed into law, the state's medical marijuana legislation didn't have clear rules for legally buying or selling the product, let alone sanitation and other processing requirements, Holcomb said. When medical marijuana was passed in Washington in 2011, then-Gov. Chris Gregoire used a line-item veto to eliminate most of the language that would have set up a formal system for buying and selling cannabis. As a result, the dispensaries that have emerged in Washington state since then have been largely unregulated. They figured out different ways to pay state taxes and to operate within the state's ambiguous law.

If existing medical businesses suddenly have to comply with the new I-502 rules, it could be extremely costly for them to do so. And in some cases, they might not be eligible to continue operating. For example, some may not pass the mandatory background checks required for an I-502 license, or may not have set up their business in a location that meets the new zoning requirements for recreational marijuana. For now, the Seattle City Council decided to grandfather in medical marijuana dispensaries under the rules they're currently subject to – but just through 2015. At that point, the council said, these dispensaries should be subject to whatever new rules the state Liquor Control Board has made for them. Sarich and other activists fear that the final outcome in 2015 will be that all existing medical dispensaries lose their grandfather status and suddenly will be subject to zoning and other rules that they wouldn't be able to follow without making significant changes to their businesses.

It still remains unclear whether the statewide limit on marijuana retail outlets will apply to medical marijuana. If so, the recently announced cap of 334 stores would make it extremely competitive and difficult to get any kind of marijuana license. Officials from the state Liquor Control Board didn't return calls seeking clarification. Licata said the city has about 240 medical marijuana dispensaries, which would be a ratio of 10 medical outlets for every one recreational store allowed in Seattle. Seattle has been allotted only 21 stores. Seattle City Attorney Pete Holmes has expressed concern about the limit on retail stores, suggesting that it may drive more people to the black market for marijuana.

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Newshawk - The General @ 420 MAGAZINE ®
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Author: Ana Sofia
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