Washington: Changes In Store For Marijuana Industry

Jacob Redmond

Well-Known Member
The song "Cat's in the Cradle" plays softly in the background as a white-bearded Eric Zeid unscrews the lid of a glass jar filled with marijuana.

Zeid is sitting behind his desk at his medical dispensary Swinging Bridges in Alger. He's giving a consultation to disabled Navy veteran Jamie Bussiere.

"How are you today, my friend?" Zeid asks Bussiere.

Bussiere suffers from neck pain and arthritis. He smokes marijuana to ease the pain and prefers it to prescription drugs.

Medical marijuana has been legal in the state since 1998. Unlike recreational marijuana, which was legalized in 2012, medical marijuana is unregulated.

That's about to change.

Gov. Jay Inslee signed the Cannabis Patient Protection Act into law in April. By July 1, medical marijuana dispensaries as they are known today will no longer exist.

Medical dispensaries will have to either apply for a retail license – and apply to keep their medical marijuana endorsement – or shut down. But even those that do apply for retail licenses aren't guaranteed approval.

That means Skagit County, along with the rest of the state, could see a string of medical dispensary closures.

Medical marijuana patients will be affected by the change, too. Their purchases will be subject to a 37 percent excise tax, and they'll have to buy marijuana from retail stores that offer less privacy for customers.

Some involved in the marijuana business in the county say it's good to finally get some regulation for the medical dispensaries. Others think some of the new laws need work to better cater to patients.

Disappearing dispensaries

While recreational marijuana comes from licensed producers, medical marijuana is grown in collective gardens by up to 10 medical-card-holding patients. Zeid gets marijuana from the collective gardens and sells it on consignment.

Medical marijuana, and the products created from it, aren't bound by government safety standards, although medical dispensary staff perform their own tests.

"I can appreciate the need for regulation," Zeid said.

He, like other medical dispensary owners in the county, has applied for a retail license and medical endorsement to sell marijuana.

Existing retail stores can also apply for medical endorsements to get in on the medical business.

The problem right now for applicants is the state Liquor and Cannabis Board doesn't know how many new retail licenses it will give out.

"We are looking to gauge the size of the market," said Brian Smith, spokesman for the Liquor and Cannabis Board. "We are trying to keep the amount of production in line with the demand so we don't have stuff being sold in the black market."

The application period opened earlier this month. There are about eight medical dispensaries in the county.

Medical dispensaries applying for licenses will be prioritized based on such things as how long the dispensary has been open, its location and if it has paid taxes.

Zeid, who has run his business for a year, thinks he'll be a low priority applicant but still anticipates getting a license. He plans to cater to both medical and recreational customers.

Other medical shops, such as 221Rx in Conway, seem to have better shots at being awarded licenses.

Joel Martin, co-owner of 221Rx, thinks he'll be near the top of the list to get a license. If he's granted one, Martin plans to move his business to Snohomish County, where he says it's easier to start a retail shop.

Other medical dispensaries in the county are still deciding what to do.

Changes for retail stores

Martin also co-owns 221, a retail marijuana store neighboring his medical dispensary in Conway. The 221 store was awarded a medical endorsement from the Liquor and Cannabis Board earlier this month, allowing it to sell marijuana to medical patients, who are allowed to buy and possess more product than recreational customers. Medical endorsements go into effect July 1.

Other retail stores in the county have also been awarded endorsements, including Loving Farms Marijuana Store in Mount Vernon and High Society in Anacortes.

Retail stores with medical endorsements will be subject to changes, the biggest of which is that staff selling marijuana to medical patients must have a special medical marijuana certificate. Certification will educate employees to better assist patients.

Retail stores with medical endorsements will also be able to sell more potent products to medical patients than they can to recreational users. These products will be limited to tinctures, capsules, transdermal patches and suppositories.

The Department of Health will also set up an optional process for more stringent testing, something called for by medical marijuana patients.

"We wanted to create rules for enhanced quality assurance," department policy manager Kristi Weeks said. "If a patient or anybody wanted to walk into a store, they could find the Department of Health seal on products to know that it would be grown to a specific specification, tested, labeled, sealed."

Impacts to patient

Medical dispensaries now charge sales taxes of 8.5 percent. When the new law goes into effect, medical marijuana purchases will be subject to the 37 percent excise tax that applies to recreational pot.

Patients who have registered with a state Department of Health database will be able to buy more marijuana and avoid the sales tax of 8.5 percent.

Martin said patients won't notice much of a price difference in marijuana flowers – the kind used for smoking – because there is not much of a difference whether they are bought at medical or retail stores.

But he said those who buy consumables, such as the tinctures, will be most affected by the excise tax.

Martin's main concern with the upcoming changes is the level of patient privacy. His medical marijuana store, like most medical dispensaries in the county, has a waiting room for patients and a private consultation room. He thinks that level of service will decline at busy, noisy retail shops that have medical endorsements.

"One-on-ones will be less intimate, probably," Martin said.

A few retail shops in the county, such as Loving Farms Marijuana Store and High Society, are already thinking of ways to support medical marijuana patients. Those store owners may add consultation areas for customers to alleviate privacy concerns.

Martin says regulation has been a long time coming.

"We look forward to having regulation in the medical industry," Martin said. "We understand it's not going to be perfect or make everyone happy, but there needs to be some regulation."

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News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Washington: Changes In Store For Marijuana Industry
Author: Aaron Weinberg
Photo Credit: Brady Shreve
Website: Go Skagit News
 
I predict the same thing will happen here in Oregon. For now you can only buy legal pot in Oregon at licensed MMJ stores, but that ends come January 1. Rec stores can get licenses to sell starting January 4. As the laws are written now, access to MMJ stores for rec weed in Oregon will end, unless they change it. Also the 25% weed tax becomes law January 1.
 
“We are trying to keep the amount of production in line with the demand so we don’t have stuff being sold in the black market.”
And with that statement they are going to fail just like Washington.
 
“We are trying to keep the amount of production in line with the demand so we don’t have stuff being sold in the black market.”
And with that statement they are going to fail just like Washington.

That is true. The black market here is alive and well. I am sure that the underground grow pipeline to places like California is going strong, especially in Southern Oregon.
 
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