The drop in retail cannabis sales in Washington followed two years of strong growth, largely fueled by the boost in sales associated with the COVID-19 pandemic and the resulting shutdowns of many businesses deemed nonessential. Like many other states with legal cannabis, regulators in Washington state designated marijuana retailers as essential businesses, allowing them to remain open for business during lockdowns. 

“From March 2020 to March 2021, legacy cannabis markets saw drastic increases in growth,” Headset wrote. “In the beginning months of the pandemic for example, Colorado’s total adult-use sales grew by 63% from February to July 2020.” 

During the same period, average monthly sales in Colorado grew by 25.8% compared to the year before, while in Oregon monthly sales grew by 36.6%. Brian Smith, a spokesperson for the Washington State Liquor and Cannabis Board, said that last year’s drop in sales is the result of post-pandemic economic conditions.

“What you’re seeing as a ‘dip’ is really sales returning to normal growth as more people returned to in-person work,” Smith said in a statement quoted by The Seattle Times.

The data showed a decrease in the frequency of visits consumers made to cannabis retailers and the amount of money they spent each time. Headset’s analysis showed that the average transaction recorded at licensed cannabis retailers in Washington dropped by almost three dollars, from $34.14 in July of last year to $31.41 in 2022.

Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association, said that a decline in retail cannabis sales has also been documented in other states that have legalized sales of recreational marijuana. The Headset report showed that regulated sales of marijuana declined by nearly 10% in Oregon, while Colorado saw a drop in sales of more than 11%.

“This is not isolated to Washington state’s cannabis industry,” Smith told The Center Square via email. “We’re seeing similar trends across the country.”

High Taxes Hindering The Legal Cannabis Industry

Like many cannabis industry observers, Smith believes that retail marijuana sales are declining because taxes on regulated weed can be excessive compared to other industries, making cannabis available on the illicit market more attractive to consumers already facing higher prices on consumer goods because of international supply chain challenges.

“I believe the primary factor at play is inflationary pressure driving more consumers to procure cannabis in the underground, unregulated market,” Smith said. “Heavy taxes and regulatory burdens on our industry make it very difficult to compete with underground cannabis providers who pay no taxes at all and have no need to follow the state’s rules and regulations for producing and selling cannabis.”

Brian Fitzpatrick, chairman and CEO of Qredible, a cloud-based compliance platform for the cannabis industry, notes that taxes on cannabis in Washington are among the highest in the industry, totaling more than 46% in taxes when the state’s excise and sales taxes are combined.

“My fear is that this constant pressure from the significant taxes will cause companies to cut corners and cost in areas of quality and compliance just to compete with the illicit market,” Fitzpatrick wrote in an email to High Times. “The dangers of the illicit market are clear – they lack safety and regulation standards. If the government wants to promote safe and compliant usage, it should reconsider some relief on the excise taxes.”

The Washington CannaBusiness Association agrees that high taxes could be hindering the growth of the legal cannabis industry.

“On the margins, this high rate may be pushing some consumers to purchase their cannabis products from the unregulated, untaxed, illicit market,” the industry group said in a statement.

The post Yearly Cannabis Sales in Washington State Decline by $120 Million appeared first on High Times.

Former cannabis business owners Peter Manning and Mike Asai recall what it was like living in Seattle decades ago. “I know that we use the War on Drugs to go after Black and Brown people,” entrepreneur and Seattle-native Peter Manning told King5. “You guys punish us for years for cannabis. And now it’s okay. Now you’re doing it. Now it’s okay.”

“Growing up in Seattle, in the ‘80s, [if you] just simply had a joint you would get five years in prison,” said Mike Asai, co-founder of the Emerald City Collective. “[I’ve] seen that happen with family and friends and acquaintances, you know, for just that.”

Washington State legalized medical cannabis in 1998, which led both Manning and Asai to pursue a role in the industry. In the 2000s, both of them joined a medical cannabis collective, which brought together growers and retailers in a way that was beneficial to the community.

“To be on the bad end, when it comes to cannabis and then revert to be on the good end was very empowering,” Asai said of the collective. “Because of growing up and just seeing the War on Drugs was really the war on African Americans, the war on Black men and Black women in this country.”

In 2015, the state legalized adult-use cannabis, which forced cannabis business owners to shut down their businesses and re-apply for a license—but many Black and Brown business owners were not able to secure one. “To be legitimate and then all of a sudden now being criminalized…It’s been very traumatizing,” said Asai. “It’s been very depressing and painful to see, especially to see all the money that’s been made since the last six years since we’ve been closed. I’ve had to figure things out. I had to do Uber for about a year, just to stay afloat.”

LCB data from 2021 shows that out of the state’s 558 available licenses, only 19 have been given to Black applicants. “There is zero African American ownership in the city of Seattle, and to be supposedly this progressive state, this liberal state, it’s not showing,” Manning said.

In recent years, both Manning and Asai have spoken with the press and attended city meetings to speak out about this injustice. Recently, they both attended a Seattle City Council meeting on July 20 as public commenters urging the council to address the issue.

The Social Equity in Cannabis Task Force was created in 2020 to establish a social equity program, and to issue and reissue retail licenses. It’s first set of recommendations were submitted on Jan. 6. 2022, with a deadline that a final report be submitted to the state legislature and governor by Dec. 9, 2022.

LCB Board Social Equity in Cannabis Task Force member Ollie Garret told King5 that change needs to happen now. “Yes. I mean…what’s the saying? A day late, and a dollar short. Now the community is screaming, ‘What about us? What about us?’ Garrett said. “We go, ‘Oh, we need to fix this.’”

Garret describes the situation as a “failure” and a “missed opportunity.” “Could it have been done different in the beginning? Yes. But this was a new industry. Who knew, who thought about inclusion and Blacks being left out,” Garret said.

According to King5, the Social Equity in Cannabis Task Force is setting aside 38 licenses for people of color. Unfortunately, over half of the licenses are for business locations in areas that currently ban cannabis. “Where we’re at right now, the LCB cannot move licenses out of the areas that they’re in or create new license[s] without legislation,” Garrett said. “We are going to introduce [that] in this upcoming session.”

Manning questions the task force’s view on equity. “What are you giving me?” Manning said. “A license that says I have the right to sell cannabis? But I can’t sell cannabis because I can’t open up in this location because it’s banned. How’s that equity?”

He also suggests that consumers be conscious about where they choose to buy their cannabis. “There’s white-owned stores in our Black neighborhoods,” Manning said. “Ten years ago, you were locking us up for the same thing. White people were making millions of dollars. You’re taking that money out of our community, and they’re putting it in the white community. We want our Black-owned stores in our communities.”

The post Only 4% of Cannabis Businesses in Washington State are Black-Owned appeared first on High Times.

Experts believe that the high tax revenues from cannabis sales may not last forever, but the public health impacts could positively affect state populations. How are states using that tax money? And what does the future look like for states that collect taxes on legal marijuana?

Cannabis Tax Elevates State Revenue

Nineteen states currently have cannabis tax legislation in place, helping to increase funding for state programs and reducing the number of black market sales. Despite the elevated state tax earnings from marijuana sales, cannabis legalization is slow-moving in over half of the United States. Because of a lack of federal regulation, it is up to each state to decide on a tax structure and how those taxes will be allocated, unlike alcohol and cigarettes. 

Alcohol, cigarette, and gas taxes also contribute to state funds, but federal agencies regulate them. Due to a lack of regulation, different states enforce different marijuana taxes, and some leverage multiple taxes on medical or recreational products. 

Currently, there are three different marijuana tax structures in use in the U.S. Some choose to tax based on a percentage of the price of the plant, while others tax based on weight or potency.  Many states have that money allocated by state law for specific programs. Others simply add it to the rest of tax revenues to fund operations, public health programs, and other state initiatives.

Effects of Increased Cannabis Sales

The results from the study highlight several important topics that come up in conversations regarding marijuana legalization. Not only do legalized states make significant revenue from cannabis sales, but the data also points toward the decreased consumption of substances, including alcohol and cigarettes.

Another study out of Florida made some interesting findings about the effects of medical marijuana. According to medical marijuana patients, they are far less likely to use opioids for pain management. Other respondents indicated that medical cannabis relieved symptoms of other diseases like PTSD, chronic pain, and anxiety.

However, states with legalization have also seen an increase in car accidents. Canada was the second country to legalize marijuana fully, and this trend is also apparent across the border. Car insurance rates in Canada have increased due to legalization and a lack of understanding of how driving under the influence should affect the rates of medical marijuana patients. Evidence suggests that as law enforcement evolves to account for marijuana users driving under the influence, car insurance rates will level out.

Looking Forward

So what does the trend look like for states moving toward the legalization of marijuana? Colorado and Washington are great examples because of their high earnings, and they are home to two of the most mature cannabis markets in the United States. These two states demonstrate that states can make a large percentage of their total revenues from legal marijuana taxes. 

And while prices of the plant by weight are trending down, there is evidence that cannabis use should increase over time, laying to rest the deadly and costly effects of alcohol and cigarette use.

The post Cannabis Had Highest Tax Revenue in Colorado and Washington Over Alcohol, Cigarettes appeared first on High Times.

The board said that Unicorn Brands “cooperated with the investigation” and ceased the conversion process that was under question. Last summer, the Liquor and Cannabis Board issued a policy statement that “made clear that synthetically-derived THC from hemp was prohibited under current rules and law.”

“This was an important case about the integrity of the legal cannabis system voters approved ten years ago and which today flourishes in Washington with a carefully controlled system of production, processing and selling of cannabis to adults,” Liquor and Cannabis Board chair David Postman said in an email to marijuana license holders in the state, reminding the businesses “of the prohibition on the sort of laboratory conversions involved in the Unicorn case.”

In October of last year, the board’s Education and Enforcement Division issued an Administrative Violation Notices to Unicorn Brands for four violations in its synthesis process: “1) Misuse of License, 2) Criminal Conduct, 3) Noncompliant Extraction, and 4) Traceability Failure.”

Under the terms of the “comprehensive settlement” between the two sides, the board said that Unicorn Brands “will not resume converting hemp into THC and brings an end to a lengthy and complex investigation.”

The board provided more details on the back-and-forth that preceded this week’s settlement.

“After extensive negotiations, the agency and Unicorn reached an agreement to settle these cases. As part of this settlement, the Enforcement and Education Division has agreed to fully withdraw the alleged criminal conduct charge,” the board said in a statement. “In exchange, Unicorn stipulates and fully admits to the remaining three violations: Misuse of License, Noncompliant Extraction, and Traceability Failure. Further, Unicorn has agreed to pay the standard monetary penalties for the three stipulated violations, accept forfeiture of the seized products, and waive further administrative review. Finally, Unicorn has agreed to the condition that “it shall not use its license to produce or manufacture Delta‑8 THC, Delta-9 THC, or any similar synthetically-produced THC from any hemp-based sources in the State of Washington unless explicitly authorized by a subsequent change in state law that allows the licensee to do so.”

The case highlights concerns surrounding the burgeoning Delta-8 market, with state regulators throughout the country struggling to stay on top of new (and, in some cases, illicit) products.

In its press release on Wednesday, the Liquor and Cannabis Board called on lawmakers in Washington to take steps toward providing greater regulation on that front.

“The next important step in protecting the public health is to eliminate the burgeoning market for Delta 8 products and other synthetically-derived products outside the regulated market. These gummies and other edibles are being illegally sold in convenience stores and online in Washington and across the country. We hope the 2023 legislative session will see action to assist in eliminating these illegal sales,” the board said.

Regulation of Delta-8 is far from the only pressing matter facing Washington’s cannabis industry. The state experienced a surge in armed robberies of cannabis dispensaries earlier this year, a problem attributed to the large sums of cash on hand at such retailers.

A spokesperson for the Liquor and Cannabis Board said in February that the agency recommended dispensary owners “hire armed security guards, make frequent cash deposits so there isn’t much cash available in shops, post signs in businesses explaining that staff don’t have access to much cash, clearly communicate safety guidelines with staff so they know what to do in the event of a robbery.”

The post Washington State Settles With Unicorn Brands Following Synthetic THC Probe appeared first on High Times.

Seattle Mayor Bruce Harrell introduced three new bills to the Seattle City Council that would encourage more diverse inclusion in the city’s cannabis industry, announced on August 9. The proposals were developed in partnership with Councilmember Teresa Mosqueda as well as a pool of cannabis industry stakeholders and employees.

The proposed bills would allow the city to take “tangible steps to improve fairness and opportunity” in the cannabis industry, as Washington begins to allocate social equity cannabis licenses across the state.

“For a thriving Seattle economy, every worker and business deserve[s] safety and the opportunity to learn, grow, and prosper,” Mayor Harrell said in a press release. “As the cannabis industry continues to develop, we must course correct and support the communities who too often have been left behind. Equity in this industry means safe working conditions and fair treatment for workers, store ownership that includes the communities most impacted by the war on drugs, and a commitment to fairness, innovation, and opportunity.”

The suite of bills would create a city-level social equity license, intended to reduce barriers toward opening cannabis stores for underrepresented communities and those most impacted by the War on Drugs. They would lay down the groundwork for future cannabis-related businesses, in collaboration with the Washington State Liquor and Cannabis Board, to also issue licenses through a social equity framework.

The legislation would require a 90-day retention of store workforce when ownership changes—similar to protections created for hotel workers in 2019. They would create a short-term cannabis advisory committee, selected in collaboration with City Council to collect input on cannabis equity and needs from workers, community members, and industry leaders. A needs assessment would be implemented to understand additional steps to make the industry more robust and sustainable for diverse communities.

The legislation would work in tandem with County and community efforts to further the work of expunging convictions for cannabis-related crimes prior to 2014. Finally, the legislation would develop a state and federal legislative agenda promoting cannabis equity, as well as safety improvements, capital investments, and access to banking services.

Mayor Harrell joined the Seattle City Council to call for the passage of the federal SAFE Banking Act to allow cannabis businesses to get access to banking.

“After years of [our] community asking for greater equity in the cannabis industry, this legislation represents an initial step in the right direction towards creating local equity applications, improving workforce standards, and focusing on safety for workers in the cannabis industry. Thank you, to the broad coalition led by cannabis industry workers and businesses who have been calling for reforms in this industry, and for not letting up. I look forward to continuing to work with you and the Mayor’s office to make these first policy steps impactful, and to building on this approach to create greater cannabis equity to address the harms caused by the war on drugs and past harmful policies.”

The legislation was also supported by union members from UFCW 3000. “This legislation is an important first step to gain vital protections for cannabis workers,” said Joe Mizrahi, Secretary-Treasurer of UFCW 3000. “Essential cannabis workers in UFCW 3000 look forward to working with the Mayor’s office and City Council, with a broad coalition of community stakeholders, to build on this foundation in the years to come.”

The post Seattle Mayor Introduces Bills to Enhance Equity in Cannabis Industry appeared first on High Times.

Democratic state Representative Melanie Morgan, the sponsor of the legislation, told her colleagues in the House last year that the word “marijuana” has racial undertones that go back nearly a century.

“The term ‘marijuana’ itself is pejorative and racist,” Morgan said. “As recreational marijuana use became more popular, it was negatively associated with Mexican immigrants.”

“Even though it seems simple because it’s just one word, the reality is, we’re healing the wrongs that were committed against Black and Brown people around cannabis,” she added.

Racist Language in Legislation

Morgan said that the word’s racist connotation was initiated by Harry Anslinger, the first commissioner of the Federal Bureau of Narcotics, which later became the Drug Enforcement Administration. Anslinger was an instrumental force in the passage of the Marijuana Tax Act of 1937, which began the U.S. prohibition of cannabis.

“It was … Anslinger that said, and I quote, ‘Marijuana is the most violent causing drug in the history of mankind. And most marijuana users are Negroes, Hispanic, Caribbean, and entertainers. Their satanic music, jazz, and swing results from marijuana usage,’” Morgan said during a legislative hearing.

State Representative Emily Wicks said the bill can help change how conversations about cannabis are framed.

“Although we call it a technical fix, I think it does a lot to undo, or at least correct in some effort, some of the serious harms around this language,” Wicks said.

Joy Hollingsworth, who owns Hollingsworth Cannabis Company with her family, told KIRO television news that the word “marijuana” is an unwelcome term for many people in communities of color.

“It had been talked about for a long time in our community about how that word demonizes the cannabis plant,” said Hollingsworth, who learned about the negative association of the word from her mother.

“She was the one who educated us on the term and how it was derogatory, and we shouldn’t use it anymore,” Hollingsworth said. “We have a lot of people, especially in the Black community, that went to prison over cannabis for years, that were locked up, separated from their nuclear family, which is huge.”

Hollingsworth said that House Bill 1210 is a step in the right direction. But she would also like to see more action on social equity in cannabis from state lawmakers.

“We’ll take any win, right? But we don’t want to get caught up on the performative equity piece where we’re just talking about words and not actual legislation and policy,” Hollingsworth said.

One possibility would be to invest cannabis taxes in communities disproportionately impacted by the War on Drugs.

“We will feel like the industry has paid off when we see those funds get put into college scholarships,” Hollingsworth said. “Maybe a family wanted to buy a home, and they were from the Central District of Seattle, and they wanted to go back there because they were priced out. They could get a loan from those funds. Thinking about creative ways to make impactful scalable solutions in our community is what I’m looking for.” 

Cannabis Industry and Advocates Support Bill

House Bill 1210 was supported by state and national cannabis reform advocacy groups and industry representatives, including the Craft Cannabis Coalition (CCC), a Tacoma-based retail trade group.

“Our association is supportive of social equity in the cannabis industry and strongly recognize the harm the war on drugs caused,” CCC Executive Director Adán Espino Jr. told The Center Square in an email. “We do not feel as strongly about the term ‘marijuana’ as others seem to, but we do appreciate the transition to the term ‘cannabis’ as the industry continues to develop and professionalize. If the term ‘marijuana’ has fallen out of practice, that is just the reality of it.”

Tiffany Watkins, a member of the National Cannabis Industry Association’s Diversity, Equity & Inclusion Committee, said that Washington needs to make more substantive efforts at social equity in the cannabis industry.

“While it’s definitely time to steer permanently away from terms based in racism, replacing marijuana with cannabis is merely a drop in the ocean when it comes to correcting the wrong done by the war on drugs,” she said via email. “Much more attention needs to be brought to how a state with over 10 years of legal cannabis operations still has no social equity program in place to acknowledge the barriers to entry for its BIPOC [Black, indigenous, people of color] individuals.”

In 2020, the Washington legislature established the Washington Task Force on Social Equity in Cannabis to develop policies and recommendations to support social equity in the state’s cannabis industry. The panel is currently working on proposals to provide grants to social equity applicants to help fund the launch and licensing of new cannabis businesses. House Bill 1210 goes into effect in June.

The post Washington Lawmakers Delete the Word ‘Marijuana’ from State Statutes appeared first on High Times.

The Chronicle newspaper reports that Montrell Hatfield, 16, and Marshon Jones, 15, “are wanted in connection with a fatal shooting at a Tacoma marijuana dispensary and at least 10 armed robberies at pot shops in Pierce and King counties.”

On March 19, an employee at World of Weed in Tacoma, later identified as 29-year-old Jordan Brown, was fatally shot in the neck.

The Chronicle, citing court documents, reported that, during the incident, “Hatfield fought with an employee behind the cash register and Jones fatally shot the employee in the neck.”

“After ordering everybody to get on the ground, Hatfield allegedly fired a warning shot into the ceiling and approached the manager and other employees. He handed them garbage bags and ordered them to put all the money inside,” the newspaper reported. “Brown tossed the garbage bag back at Hatfield, put his hands in the air and stepped backward, records say. Hatfield and Brown then began fighting on the ground, according to witnesses and surveillance footage. Jones allegedly broke up the fight by shooting Brown in the neck. As the teens ran for the door, Jones told Hatfield ‘Don’t worry about them,’ records say.”

Prosecutors in Pierce County, Washington “have charged Hatfield with first-degree murder and second-degree unlawful possession of a firearm,” while “Jones has also been charged.” A “third man who acted as their lookout while they robbed the stores at gunpoint has not been identified,” according to The Chronicle.

The newspaper said that prosecutors “expect to file charges against the teens in the future for four marijuana dispensary robberies in Tacoma and one in Pierce County,” and that the teens are also “suspected in five similar robberies in King County.”

On the same day as the fatal robbery, Hatfield and Jones allegedly robbed a dispensary in Seattle, and tried unsuccessfully to rob another in Tacoma.

Armed robberies of cannabis dispensaries have risen at an alarming rate in Washington, which made history when it legalized recreational pot use for adults via a ballot initiative in 2012. Last week, citing data from the in-state trade group the Craft Cannabis Coalition, the Seattle Times reported that “there have been around 67 armed robberies so far in 2022,” up from 34 and 27 in 2021 and 2020 respectively.

The trend has prompted lawmakers and other officials in Washington to sound the alarm over the vulnerability of cannabis establishments, which typically have large amounts of cash on hand. Earlier this month, state treasurer Mike Pellicciotti traveled to Washington, D.C. to urge passage of the Secured and Fair Enforcement Banking (SAFE) Act, which would allow banks to provide financial services to cannabis businesses––something the federal prohibition on pot currently precludes them from doing.

“You rob the places where the cash is,” Pellicciotti said, as quoted by local television station KING5. “These robberies are tragic. But these robberies are also preventable.”

Last month, Republican state Sen. Jim Honeyford introduced a bill that would have added an extra year to the prison sentence of anyone convicted of first or second degree robbery of a cannabis shop, the same penalty that’s reserved for individuals who rob a pharmacy.

“When people would ask the infamous bank robber Willie Sutton why he robbed banks, Sutton simply replied, ‘Because that’s where the money is.’ Well, that’s why people rob marijuana retailers,” Honeyford said at the time. “Due to federal banking rules, these businesses are almost entirely cash-only operations, making them a target for robberies and a magnet for criminals.”

The post Warrants Issued For Two Teens in Fatal Washington Dispensary Shooting appeared first on High Times.

The legislation, Senate Bill 5927, would tack on a year to the prison sentence of an individual convicted of first or second degree robbery of a cannabis shop—which, as local television station KING 5 noted, is “the same sentence that is given to someone who robs a pharmacy.”

The sponsor of the bill, Republican state Senator Jim Honeyford, invoked a notorious 20th century American bank robber to convey the urgency behind the proposal.

“When people would ask the infamous bank robber Willie Sutton why he robbed banks, Sutton simply replied, ‘Because that’s where the money is.’ Well, that’s why people rob marijuana retailers,” Honeyford said, as quoted by KING 5. “Due to federal banking rules, these businesses are almost entirely cash-only operations, making them a target for robberies and a magnet for criminals.

“The number of robberies of cannabis stores is on the rise, and this bill would make improvements for not just the benefit of the retailers themselves, but for the public safety of the community as a whole,” Honeyford added.

The bill has now been referred to the state House for further debate.

According to a summary of the bill, cannabis retailers in Washington “have been suffering from an increasing number of, often violent, thefts which are frequently committed by retail crime rings,” a spike in theft that leads to “increased cost to the businesses and lost tax revenues for the state.”

“This bill is one prong in a multi-prong approach needed to combat retail theft and protect public safety. The bill provides a deterrent to would-be criminals and a tool for prosecutors in seeking convictions for this type of crime. Often, this type of crime does not get reported on by the media,” the bill summary reads. “This crime is a big problem, and everyone in the industry is worried about the chance that they could be the next victim. This bill represents one piece of a robust legislative strategy to deal with this issue. This is a cash business which makes retailers an attractive target for crime.”

The summary says there have been more than 35 robberies at cannabis retailers since New Year’s Day.

A spokesperson for the Washington State Liquor and Cannabis Board told KING 5 that it “has been working to communicate safety guidelines with business owners,” including the following: “hire armed security guards, make frequent cash deposits so there isn’t much cash available in shops, post signs in businesses explaining that staff don’t have access to much cash, clearly communicate safety guidelines with staff so they know what to do in the event of a robbery.”

Honeyford’s bill says that the board’s “chief enforcement officer must regularly consult with the Washington state patrol to provide details of attempts or incidents of robbery in the first or second degree of a retail outlet and to discuss any evidence that indicates a pattern of, or coordinated effort by, a criminal enterprise.”

The bill isn’t the only change to Washington’s cannabis industry currently under consideration by the state legislature. Legislation currently before the state House would aim to “increase social equity and racial diversity in the cannabis trade,” according to the Seattle Times.

The bill would build on the recommendations of a task force to increase cannabis business ownership among people of color, creating “38 new retail and 25 new producer and processor licenses each year through 2029” while requiring “that these and any other new cannabis licenses may only be awarded to so-called social equity applicants until 2030, after which, 50 percent of licenses must be awarded to such applicants,” the newspaper reported.

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In a letter posted online, the Alliance for Sensible Markets called on the governors of California, Colorado, Oregon and Washington to seek guidance from the U.S. Department of Justice on how the government would react if two or more states with legal medical or adult-use marijuana decided to regulate cannabis trade across their state lines. The letter notes that federal legalization of cannabis, which at this point seems inevitable, will present an economic opportunity to cannabis-producing states in the West.

“When the federal government legalizes cannabis, the Commerce Clause of the U.S. Constitution guarantees that producers across our four states will have non-discriminatory access to every legal adult-use and medical market in the country,” the letter reads. “That will be worth billions of dollars per year to our states’ economies, increasing state revenues and spurring investment, expansion, business formation, and jobs and could, if it happens soon, save thousands of small farms and businesses from extinction.”

The Alliance for Sensible Markets is a Portland, Oregon-based coalition of cannabis activists and producers including the National Organization for the Reform of Marijuana Laws (NORML), the Washington Sun and Craft Growers Association, the Weed for Warriors Project, and the Colorado Cannabis Manufacturers Association. Formed last year, the group is working to connect cannabis producing and consuming states in regulated interstate commerce.

Interstate Commerce to Set the Stage for a National Cannabis Industry

Paired with a federal policy that would permit state-legal cannabis businesses to operate without interference, interstate cannabis commerce could be a more politically viable path to many of the goals of full legalization. Adam Smith, the founder and president of the Alliance for Sensible Markets, believes that interstate commerce in cannabis can connect consumers in newly legal markets with western cannabis producers, who have recently seen wholesale prices plummet.

“Thousands of small farms and businesses across the Pacific Northwest, in communities that have depended on the economics of cannabis for generations, face economic catastrophe as they choke on a glut of some of the world’s best and most efficiently produced cannabis,” Smith wrote in an email to High Times. “This is not an oversupply problem, it’s a market access problem. Meanwhile, millions of patients and consumers in legal states where cannabis is expensive and environmentally costly to grow will be stuck in illicit markets for years, and thousands of potential retail, distribution, delivery and other businesses will be stuck on the sidelines waiting for a steady but limited and overpriced supply chain to emerge in their states.”

The group maintains that the current system of regulated cannabis trade, with each state that has legalized marijuana operating its own contained market of production, manufacturing, distribution and sales, is unsustainable. By seeking guidance from the federal government now instead of waiting for national legalization, the coalition hopes to create a more sustainable cannabis industry that better serves the needs of all stakeholders.

“We believe that the simple act of asking the question will significantly advance the national conversation around the future of legal cannabis, and that positive guidance from DOJ will spur changes beneficial to both producer and consumer states, as well as to patients, consumers, public safety, social equity, small businesses and environmental sustainability in any legal or medical states that choose to regulate and engage in commerce in advance of federal legalization,” the letter concludes.

Smith says that California, Colorado, Oregon and Washington, four states that were early pioneers in the cannabis legalization movement, are uniquely positioned to help shape national policy with federal regulators.

“Federal Legalization will open markets, but waiting for the federal government to ‘fix’ cannabis has never been a winning strategy,” Smith explained. “It has always been the states taking the lead on reform. Positive DOJ guidance will open the path to a more rational, just, and sustainable industry now, in states that choose to participate in commerce.”

The Alliance for Sensible Markets is currently encouraging additional cannabis consumers, businesses, and other interested parties to sign the letter and plan to deliver it to the four western governors next month.

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That’s thanks to a new rule set by the Washington State Liquor and Cannabis Board that will go into effect shortly. Anyone who obtains a license must first pass an obligatory background check, but now, a felony on a record won’t necessarily be an automatic disqualifier.

Serious felony convictions within the past 10 years, however, will still trigger deeper scrutiny of a person’s application. But the rules no longer bar people with felonies from receiving a license. 

The protocol for less serious felonies also was updated. Specifically, one Class C felony on a record won’t automatically bar their license application. In addition, if someone has fewer than three misdemeanor convictions in the past three years, that won’t be enough to prompt a deeper review. 

Failure to report an old misdemeanor from juvenile court won’t count against applicants anymore, either.

With a strong focus on social equity in recent years, the rule change is being celebrated by cannabis business people because it allows people who were arrested at disproportionate rates to enter the legal industry.

“I think it’s great what the state is doing in terms of allowing people who have issues in the past, to be able to qualify,” Tran Du, co-owner of Shawn Kemp’s Cannabis in Seattle, told KOMO News.

The idea behind the rule change is that people who were arrested at disproportionate rates for cannabis shouldn’t be barred from participating in the industry, now that it’s legal.

“We wanted to bring parity in the disproportionality that we saw from the leftover of the war on drugs and that Black people were being arrested and brown people were being arrested disproportionately,” said Representative Melanie Morgan (D-Parkland) who is also chair of the state Social Equity on Cannabis Task Force.

Morgan stressed the need to get the state’s priorities in line. “The bottom line is bringing parity to the industry and making sure that Black and brown people have equal access to this industry in ownership,” she said.

Why Allow Felons?

Disparities in arrest rates of people of color are evident in numerous states, and Washington state is no different.

A study conducted by the Marijuana Arrest Research Project, entitled “240,000 Marijuana Arrests Costs, Consequences, and Racial Disparities of Possession Arrests in Washington, 1986‐2010,” found that although African Americans and Latinx people consume marijuana at lower rates than whites, African Americans were arrested for marijuana crimes at 2.9 times the rate of whites in the state. Latinos were arrested at 1.6 times the rate of whites.

The burden of a felony can prevent some people from participating in the cannabis industry. As an example, High Times highlighted the case of Katree Darriel Saunders, who was barred from Nevada’s industry over a pot charge. As a one-time employee in the Nevada medical space, served four months in federal prison over a probation violation after choosing cannabis over opioids to treat trauma and injuries. That choice has burdened Saunders for over a decade, largely preventing her from participating in the industry despite years of experience, success and an otherwise spotless record. 

Other routes into the cannabis industry are available, depending on what state you live in. Several states that have legalized marijuana also offer opportunities for convicts to expunge their records.

The post Felons Can Now Get Cannabis Licenses in Washington State appeared first on High Times.