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Washington Senate Bill 5887: A Blending or a Battlefield?

Since the passage of Initiative 502, more than 25 cannabis-oriented legislative bills have dropped in the Washington legislature. Clearly, the legislature has taken an acute interest in the fate of cannabis in this State, for both the medicinal and recreational industries. Among the proposed

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Since the passage of Initiative 502, more than 25 cannabis-oriented legislative bills have dropped in the Washington legislature. Clearly, the legislature has taken an acute interest in the fate of cannabis in this State, for both the medicinal and recreational industries. Among the proposed bills, one of the most controversial is Senate Bill 5887 (SB 5887). While various political groups and policy makers are in support of SB 5887, there is also opposition to it from significant portions of the MMJ community.

SB 5887 ultimately proposes a quasi-merging of regulations for both medical and recreational cannabis, under which the state Liquor Control Board (LCB) would be tasked with licensing and regulating dispensaries, processors and growers (while also overseeing nearly identical licensing on the recreational front). Specifically, the bill:

  • Contains a 20 percent excise tax on the wholesale sale of medical cannabis or a ten percent 10 percent tax on the retail sale of medical cannabis if the grower is also the processor or dispenser;

  • Distinctly separates “dispensaries” from “collective gardens,” whereby dispensaries would be licensed by the LCB and collective gardens would not be subject to such licensing;

  • Adjusts membership access to collective gardens for qualifying patients to 10 patients per day (rather than 10 patients at any time);

  • Mandates that qualifying patient recommendations are valid for up to one year if the patient is 18 or older and, if under 18, that the qualifying patient’s recommendation is valid for up to 90 days;

  • Requires the recommending health care provider to insert into the patient’s medical record a statement saying “the patient may benefit from treatment of a terminal or debilitating medical condition . . . or its symptoms with medical use of cannabis.”;

  • In contrast to current MMJ laws, provides immunity from arrest and prosecution for qualifying patients based on compliance with State law;

  • Allows cities, counties and towns to regulate dispensaries, processors and producers through the enactment of zoning ordinances, health and safety requirements, business license requirements, and business taxes.

According to Sen. Ann Rivers, “[s]ignificant problems could arise if the state’s two marijuana markets are too different.” Rivers also testified in front of the legislature on April 16, stating that “[SB 5887 is] the beginning of a very full and robust discussion about this issue . . . What this bill is about is a loophole that allows folks to sidestep Initiative 502.” The opposition to SB 5887 testified during the same hearing, objecting to increasing taxes on the medical industry, arguing that cannabis should be treated the same as other prescription drugs that are not normally taxed. The opposition also made the case that the LCB should not be charged with regulating medicine (as the LCB remains an enforcement—not a medical—agency).

Undoubtedly, what SB 5887 shows us most is that medical and recreational cannabis are on a potential collision course (at least as far as the legislature is concerned). With this legislative session ending on April 28, SB 5887 has little chance of even getting a vote. As I-502 regulation and licensing proceed, there will be a continued push in the legislature to amend medical cannabis law, and a clone of SB 5887 will almost surely be introduced next session.

The Canna Law Group is a practice group of Seattle-based law firm, Harris & Moure, pllc. The Canna Law Group focuses on cannabis business law and litigation under both medical and recreational cannabis laws in Washington State. The Canna Law Group can be contacted via phone or web at (206) 224-5657 or www.cannabislawseattle.com.

 

 

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