Pubdate: Wed, 21 May 2014
Source: East Bay Express (CA)
Copyright: 2014 East Bay Express
Contact: http://posting.eastbayexpress.com/ebx/SubmitLetter/Page
Website: http://www.eastbayexpress.com/
Details: http://www.mapinc.org/media/1131
Author: David Downs

STATEWIDE POT REGULATIONS ON HOLD

Meanwhile, in Oakland, Rich Lee's former medical pot dispensary is up 
for permit review, and in the state of Washington, recreational pot 
outlets may open later this summer.

When it comes to regulating retail outlets for recreational and 
medical marijuana, smaller-scale efforts are having success, but 
larger efforts are still foundering. The relatively low-population 
state of Washington is set to see its first pot retail outlets open 
later this summer. And cities like Oakland have been effectively 
regulating medical pot for more than a decade. But the state of 
California can't seem to get out of its own way.

Oakland

Oaksterdam founder and Proposition 19 sponsor Rich Lee's former 
medical marijuana outlet is up for its annual review. Formerly known 
as SR-71, then as Coffee Shop Blue Sky, the medical cannabis 
dispensary Oakland Community Partners (OCP) has an administrative 
permit renewal hearing on June 2, according to city staff. Oakland 
pioneered the regulation and taxation of dispensaries in 2003 and 
currently has seven licensed dispensaries, each with sterling records 
for public safety.

Located in a choice spot at 1776 Broadway, in the city's Uptown 
district, just blocks from the 19th Street BART Station, OCP is 
currently serving mediocre-grade medical cannabis at average prices 
in a large, clean, well-lit facility. The so-so product might have 
something to do with the dispensary's recent history.

In 2012, federal agents from the IRS, DEA, and US Marshals raided the 
then-Coffee Shop Blue Sky as part of a federal investigation into Lee 
and his half-dozen canna-businesses in Uptown. No charges have been 
filed, but Lee later ceded control of his enterprises to their 
respective managers, and Blue Sky moved into Lee's hemp museum space 
at 1776 Broadway, which still bears the signage "Oaksterdam University."

Timothy Sherwood, Cyrus Saghebi, and Larry Richards are listed on the 
City of Oakland's website as the principals at OCP. Sherwood and 
Richards are former Blue Sky managers. The club is keeping a very low 
profile. You won't even find it on WeedMaps.com.

During a recent visit, armed security checked IDs, while sign-up took 
a few minutes in the well-kept but barren lobby. The main room is 
almost empty, with only an ATM on one side and a small, two-station 
sales counter on the other.

OCP had a small selection of staples like Jack Herer and OG Kush in 
small dishes that were left open to the air (which saps their aroma). 
Our pre-weighed bag of Jack Herer featured mostly small, fluffy buds 
that were lackluster in look, nose, and taste - though the 
sativa-dominant effects remained intact. Better bud can be found on 
West Grand Avenue at Blum Oakland.

Washington State

The first retail pot shops in the state of Washington could be open 
by late July or early August. The Washington State Liquor Control 
Board (WSLCB) is in the process of permitting the states' first 
retail pot stores, after a late-April lottery determined the order in 
which applications would be reviewed. The WSLCB reviewed 1,174 
applicants in the lottery, with the most intense competition for 
licenses coming from the Seattle area.

"Being identified as the apparent successful applicant is not a 
guarantee that the selected applicant will receive a license," the 
WSLCB warned in a recent statement. Applicants must also pass a 
criminal background check and a financial investigation, and be 
located farther than 1,000 feet from a school or park.

In 2012, Washingtonians approved Initiative 502, which legalized pot 
for adults age 21 and older. The measure banned home-growing and put 
the WSLCB in charge of bringing the black market trade into the light 
by regulating retail marijuana outlets. Weed will be taxed at a stiff 
25 percent.

The WSLCB is also licensing pot farms and processing facilities and 
has issued 25 producer and processor licenses so far. The agency 
expects to begin issuing retail licenses no later than the first week of July.

Colorado's recreational pot shops have been open since January 1, and 
gross tax revenues totaled about $20 million for the first three 
months, according to the state's Department of Revenue.

Sacramento

Earlier this week, state Senator Lou Correa amended his Senate Bill 
1262 - which would regulate California's medical cannabis industry - 
to remove the California Department of Public Health from the 
position of regulating the state's $1.8 billion industry, according 
to the League of California Cities.

Instead, SB 1262 would defer regulations to local code enforcement, 
further enshrining the state's confusing patchwork of conflicting 
medical marijuana rules. The amendment could also perpetuate federal 
raids on the California weed industry, because SB 1262 is unlikely to 
satisfy federal guidelines for "strong and effective" statewide regulations.

At a hearing Monday morning, the Senate Appropriations Committee 
moved SB 1262 to the "suspense file" so that analysts can examine its 
impact on the state's budget.

Assemblymember Tom Ammiano's similar bill - AB 1894 - has also been 
added to the suspense file, but it could get a floor vote in the 
Assembly later this month. It puts the Department of Alcoholic 
Beverage Control in charge of pot, at an estimated cost of $15 
million per year, or roughly 25 percent of the existing ABC budget.
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MAP posted-by: Jay Bergstrom