Cindy Flynn, Carney Badley Spellman Presentation

Cindy G. Flynn
Carney Badley Spellman, PS
206-607-4167
[email protected]
Commercial Broker Presentation
Bellevue, WA:
October 28, 2014
MEDICAL MARIJUANA - Dispensaries
◦ RCW 69.51A.040 states that the medical use of
cannabis does not constitute a crime and a
qualifying patient or designated provider in
compliance with the terms and conditions of this
chapter may not be arrested, prosecuted… for
possession, manufacture, or delivery of… cannabis
under state law.
◦ Dept. of Health sets out the rules by which a
medical provider can authorize medical marijuana.

A qualified patient or designated provider may
posses up to 24 ounces of useable marijuana or 15
marijuana plants, or participates in a collective
garden.

“Qualifying patient” means a person who:

(a) Is a patient of a health care professional;


(b) Has been diagnosed by that health care professional as
having a terminal or debilitating medical condition and
advised of risks and benefits of use;
(c) Is a resident of the state of Washington at the time of
such diagnosis.

A qualified patient or designated provider may
posses up to 24 ounces of useable marijuana
or 15 marijuana plants, or participates in a
collective garden.
“Designated provider” means a person who:



(1) Is eighteen years of age or older;
(2) Has been designated in writing by a patient to serve as
a designated provider under this chapter; and
(3) Is the designated provider to only one patient at any
one time.




Definition of “collective garden” – RCW 69.51A.085:
Qualifying patients may create and participate in collective
gardens for the purpose of producing, processing,
transporting, and delivering cannabis for medical use subject
to the following conditions:
(1) No more than ten qualifying patients may participate in a
single collective garden at any time;
(2) A collective garden may contain no more than fifteen
plants per patient up to a total of forty-five plants;
(3) A collective garden may contain no more than twenty-four
ounces of useable cannabis per patient up to a total of
seventy-two ounces of useable cannabis;


(4) A copy of each qualifying patient's valid
documentation must be available at all times
on the premises of the collective garden; and
For purposes of this section, the creation of a
“collective garden” means qualifying patients
sharing responsibility for equipment,
supplies, and labor necessary to plant, grow,
and harvest cannabis.

Dispensaries –
◦ Dispensaries are not allowed by statute or any other
Washington law and are illegal!
◦ The recreational marijuana law under I-502
authorizes sale by retailers licensed by the
Washington State Liquor Control Board only.



Initiative 502 - Alison Holcolm and the ACLU
Decriminalize possession of small amounts of
marijuana from a social justice perspective
Successful because of tough DUI and minor’s
component in the initiative.


Legal to possess up to one usable ounce of
marijuana if 21 years or older.
December 6, 2012: I-502 went into effect.
One year for the LCB to develop rules and
regulations.



Producer - grows the marijuana for wholesale to
other I-502 licensees. (Tier 1-3) (unlimited #)
Processor - processes, packages, and labels
marijuana and infused products such as edibles
for wholesale to I-502 retailers. (unlimited #)
Retailer - allows for sale of usable marijuana and
marijuana infused products at I-502 retail
outlets. (334 retail shops determined by lottery
location)


Tax Scheme: 25% excise tax at each level and
additional B&O tax at all levels and sales tax
at retail level.
Insurance: Required to have $1M in a CGL
policy.




Tracking: Seed to sale with BiotrackTHC
Testing: Analytical 360 Lab - testing for THC
content and contaminants
Security: Required video surveillance, alarms,
safes
Enforcement: LCB’s monitoring and licensing



Federal law – Federal Controlled Substances Act
Possessing, growing and distributing marijuana remain
illegal under federal law for recreation or medical use.
Attorney General Eric Holder called both Governors Jay
Inslee and John Hickenlooper (Colorado) to outline the
federal government’s guidance on legalized marijuana
re: youth access and public safety.
I-502 does not preempt federal law. Washington State
retailers/producers could still be subject to prosecution
by the federal government and confiscation of assets.

Advertising – restrictions

Theft – theft of marijuana product

Auto – transportation of goods and cash

Product Liability – consumer illness from tainted
product

Property Damage - mold and pests



Retail Store Sign - single 1,600 square inch sign advertising their
trade name
Advertising by retail licensees - may not contain any statement, or
illustration that:
◦ Is false or misleading;
◦ Promotes over consumption;
◦ Represents the use of marijuana has curative or therapeutic
effects;
◦ Depicts a child or other person under legal age to consume
marijuana, or includes objects such as toys, characters, or cartoon
characters.

Website

Social Media

Advertise online with a retail marijuana-finder service

YouTube page

Shopping bags can have the name and/or logo

Magazines, newspapers and publications

Billboards - 1,000’ of any of the restricted areas

Advertise for cannabis on the radio and TV

No “gift with purchase” promotions



Provocatively-dressed models, costumed
characters, and/or sign twirlers to advertise
my business
Trucks and vehicles - 1,000’ of any of the
restricted areas

City of Fife –
Moratorium by cities and counties upheld.

WA Legislation –
Work Session 10/6: Federal Banking Regulations
and the Development of the Legal Marijuana
Market.