Valley preps for weed shops

With recreational marijuana stores springing up around the state, the city of Snoqualmie has decided to play it safe and renewed a third, six-month moratorium that was first implemented April 14, 2014.

With recreational marijuana stores springing up around the state, the city of Snoqualmie has decided to play it safe and renewed a third, six-month moratorium that was first implemented April 14, 2014.

“My perception is we’re in a moratorium to look at the issue. I wouldn’t pre-determine any sort of benefits or negative aspects (of opening stores) until I know (what will happen in Olympia),” said Mark Hofman, Snoqualmie’s community development director. “I characterize it as un-opinionated, to put some regulation in place, to examine a variety of options and then let the city council… through the public process, decide what those chosen regulations will be.”

According to the April 7 city council agenda report, it is especially interested in the result of the Kent and Fife cases, attempts to ban recreational marijuana in their cities, as well as upcoming legislative action, which Washington will soon see a lot of.

Senate Bill 5052, passed in April, will shutter medical dispensaries and move their distribution into recreational stores, but it’s one change of many that are coming in Washington for legalized weed. Another change is the renaming of the Washington State Liquor Control Board to the Washington State Liquor and Cannabis Board.

Senate Bill 6062 was also passed in April and attempted to balance the legalized marijuana taxes, which are hindering its competitiveness with illegal sales. Marijuana growers and producers pay a 25 percent tax at each level of production, processing and retail; the new bill leveled the tax to a flat rate of 37 percent.

House Bill 2136 is currently making its way through the special session. Its intent is to establish some ground rules in the wild west of weed.

The new bill will make the “1,000-foot rule” that keeps shops away from minors a city-specific decision, which would open up more spaces for shops. This bill would also prohibit local governments from banning pot shops unless the move is voter approved.

It will also set new tax boundaries. With H.B. 2136, after the general fund minimum revenue of $25 million is reached, 30 percent will be distributed among cities that allow pot shops in their limits. For more details on this bill, see: www.awcnet.org/LegislativeAdvocacy/BillTracker/BillDetails.aspx?Biennium=2015-16&BillNum=2136.

Initiative 502 legalized recreational weed in Washington in November 2012 and formed a three tier system for marijuana producers, processors and retailers. Holding all three licenses is illegal, but licensees may hold a producer and processor license simultaneously. The retailer licenses were limited to 334 and were awarded by a lottery system; the applications for the other two license types were unlimited.

The application process is closed indefinitely as of December 20, 2013.

Producer applications were divided into three tiers: Tier 1 allows 2,000-square-feet or less of dedicated plant canopy; tier 2 allows between 2,000 and 10,000 square feet; and tier 3 allows between 10,000 and 30,000.

In Snoqualmie, there have been two applications for producers – “Aabundant Bud,” a tier 2 producer listed as permanently closed and “Techbud,” a tier 3 producer with a pending application. Throughout the Valley, North Bend has two growers with active, issued licenses, Apsu (tier 1) and Prince Farms (tier 3). Fall City has an active, tier 1 producer and multiple pending license applications. Carnation has two pending applications and one closed. Duvall has one active license, with three pending.

As marijuana is still illegal on a federal level, the state cannot protect producers and retailers if the federal government decides to step in and pursue prosecution or confiscation.

Until then, the Liquor and Cannabis Control Board shows the average daily sales at $1,243,926, with total sales of $205,917,611 and generated $51,479,403 in taxes.