Pubdate: Mon, 07 Jan 2013
Source: Seattle Times (WA)
Copyright: 2013 The Seattle Times Company
Contact:  http://seattletimes.nwsource.com/
Details: http://www.mapinc.org/media/409
Author: Jonathan Martin

GROUPS JOSTLE TO INFLUENCE STATE ON NEW RULES FOR GROWERS, SELLERS

Marijuana Market

As the Liquor Control Board Writes Regulations for the New Industry,
Interest Groups Are Lobbying in Hopes of Having a Say.

Teams of lobbyists, lawyers, farmers and businessmen are lining up to
make their case as the state begins to write the rules for growing and
selling marijuana in a new legal and lucrative market.

The state Liquor Control Board (LCB), charged with launching the
world's first regulated marijuana market for social use, expects to
begin accepting applications for grower licenses April 17, with the
first licenses to be issued in May.

State-licensed marijuana stores won't open until at least December,
after marijuana-processor and retail licenses are issued. But several
groups already have hired veteran lobbyists to influence the LCB, with
business interests keenly aware of the potential.

"The investment potential is huge," said Chris Kealy, owner of the
Iron Horse Casino in Auburn who recently joined the board of the
Washington Cannabis Association, a marijuana-industry trade group. "I
had guys coming at me with lots of dollars, as long as there's good
rules."

The biggest question for now is how - and how many - grower licenses
will be issued. A state fiscal analysis suggested 100 state-licensed
growers would produce 187,000 pounds a year, a volume that would
require warehouse-sized grows of several thousand plants.

Having fewer, larger grows could lower costs - but also invite federal
attention.

It would also stifle the innovation of the existing fleet of marijuana
growers, said Phil Wayt, past president of the state beer and wine
wholesalers association and now the head of the Northwest Producers
and Processors Association, a newly formed alliance of growers.

"There should not be a cap on licenses," said Wayt. "We are suggesting
a model that will be like the system that worked well for craft
brewing and the wine industry in Washington. It's allowed small
business to foster and grow."

The marijuana law, approved by voters in November, does not specify
whether the grow farms must be indoors, or if farmland could be plowed
over with marijuana seeds. The only requirement is marijuana be grown
in-state, in a secure location at least 1,000 feet from a school,
park, transit center or child-care facility.

Seattle attorney Hilary Bricken said her new association, Cannabis
Business Group, has six wealthy founding members and has hired a pair
of lobbyists. Among the group's goals, she said, are to discourage the
LCB from putting residency or investment restrictions on marijuana
operations.

"We don't want it to be small time. We want it to be huge, because my
clients want to be huge," said Bricken.

The agency is also figuring out what types of convictions will
disqualify license applicants. Among the issues is whether a
conviction for a marijuana-related crime should be a
disqualifier.

The LCB is taking public comments on the grower license through Feb.
10, and has been inundated with emails from farmers, medical-marijuana
patients and a self-described minister from The Order of the
Starleafed Tree.

The agency plans to put out a bid for a marijuana-industry expert next
week who would determine the scope of the state's appetite for
marijuana. "We want to verify the consumption levels, and build up
from there," said spokesman Brian Smith.

No decisions have been made on the number of grower licenses or how
large the farms could be, Smith said. "What you don't want is to have
oversaturation of the market, which exceeds consumption," said Smith.
"Where would that product go?"

Kealy suggested the LCB was "already way behind" on the complicated
task and should consider starting a pilot project for the grower
license, then phase in a full licensing scheme.

The Legislature may be weighing changes to the medical-marijuana law.
Medical-marijuana advocate Greta Carter, of Seattle, said her group,
the Coalition for Cannabis Standards & Ethics, is pushing for new laws
to protect patients from arrest and to explicitly allow
medical-marijuana dispensaries.

State Sen. Jeanne Kohl-Welles, D-Seattle, said she is likely to
propose a medical-marijuana bill, so long as it would be "amenable" to
new leadership in the Senate, where a coup by fiscally conservative
Democrats and Republicans upended Democrats' control.
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MAP posted-by: Jo-D