Tag Archives: washington

NEW RULES! 314-55-045 – aka “How to get permanently banned from i502”

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New rules under consideration for i502 announced today. 314-55-045 has been expanded to include terms that define what rule, law, or violation history might prevent an applicant from receiving or renewing their marijuana license.

What timing – someone was just asking about this on one of my other posts. Gotta go back and tag em here.

#rulemaking #policy #legislation #i502 #lcb#wslcb #recreationalmarijuana #legalweed#olympia #wa

i502 Compliance Violations by License

Published / by bde / Leave a Comment

Because Biotrack is stupid and their database tables suck, this table doesn’t display the actual name of the Licensee that had the violation. Until I figure out a better way, here’s a nifty URL that you can use and just cut and paste the license number and add to the end of the URL to see who committed the violation.

https://502data.com/license/[paste license number here]

For example, https://502data.com/license/414841

[TODO: add links to table for license name lookup and WAC code and case # linkage]

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An industry in limbo: Recreational Pot in 2017

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What will the new Administration in Washington DC do?

With recent changes in Washington DC, the future remains uncertain for the fledgling Recreational Cannabis industry across the nation. Time will tell if our incoming Attorney General, Jeff Sessions will go after the cannabis industry. My gut tells me they won’t, but that’s coming at it from a logical standpoint, and from what I’ve seen so far coming from DC,  logical deduction and hard facts seem to have been tossed into the dumpster.

Given the dollar amounts we are talking about in terms of taxes generated ($185 million in FY2016 for WA state), and the ensuing lawsuits that would follow, coupled with the enormous negative economic impact (jobs and productivity lost – especially in rural areas), I genuinely hope the incoming AG respects states’ rights and does not interfere with the legal Cannabis industry.

Changes in Washington State

Here in Washington state, there are a number of interesting proposed changes coming out of Olympia this session that would have a significant impact on the industry at large.

HB 5102 – Out of state ownership and investment

The first change has to do with allowing outside sources of funding (non WA residents) for i502 Businesses. Currently there are funding and lending restrictions that limit the amount of investment capital can flow in from outside the state. House Bill 5102, clarifying residency requirements for licensed marijuana businesses, has been introduced and is in committee. There is a public hearing scheduled for

The key changes in verbiage in HB5102 have to do with limiting the percentage ownership by out of state interests to 50% ownership and allowing “managers or agents” aka owners who are exempt from the residency requirement.

…with the exception that only those holding fifty percent of all ownership interests must meet the residency requirement;

A person whose place of business is conducted by a manager 21 or agent, unless the manager or agent possesses the same 22 qualifications required of the licensee, with the exception of the residency requirement.

Source: http://app.leg.wa.gov/billsummary?BillNumber=5102&Year=2017

HB 1092 – Allowing “Home grows”

House Bill 1092 would amend the i502 Legislation to allow any Washington state resident 21+ years old to cultivate up to 6 marijuana plants and possess up to 24 ounces of dried plant material from the personal cultivation. For any single residence if there are 2 or more adults 21+ or older, you may have up to 12 plants and 48 ounces of dried plant material. You may only leave your residence with up to an ounce of “home grown” at a time.

(4)(a) Subject to the requirements in this subsection (4), the possession by a person twenty-one years of age or older of no more than six marijuana plants and up to twenty-four ounces of useable marijuana harvested from lawfully grown plants is not a violation of this section, this chapter, or any other provision of Washington state law, provided:
(i) The plants are grown and possessed only within the premises of the housing unit in which the person resides; and
(ii) The useable marijuana has been harvested from plants lawfully grown within the premises of the housing unit in which the person resides and is not removed from the premises in amounts exceeding one ounce.
(b) No more than twelve marijuana plants and forty-eight ounces of useable marijuana may be possessed, in the aggregate, by the adult residents of a single housing unit, regardless of the number of persons twenty-one years of age or older residing in the housing unit.
(c) This subsection (4) does not apply to marijuana plants or useable marijuana possessed at a location other than the premises of the housing unit in which the marijuana plants were lawfully grown.

Source: http://lawfilesext.leg.wa.gov/biennium/2017-18/Pdf/Bills/House%20Bills/1092.pdf

Regardless of where you stand on legal cannabis, please take a minute to acknowledge that there are tens of thousands of business owners, employees, and fellow Washingtonians who are pouring their blood, sweat, and tears into being successful in this industry. As we have in the past, we continue the journey into uncharted waters. Onward we go!

BDE -∞+

The constant struggle for legitimacy in the legal cannabis industry

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For many i502 business owners, it’s been an uphill battle to get fair (and easy) access to the Federal Banking system. As a result, i502 businesses have gotten creative in their approaches to managing money. In some cases, this puts them at odd with the Feds, with the Banks, and with consumers. It’s a no win situation that needs to change.

In the old MMJ days, it wasn’t uncommon for MMJ dispensaries to be shuttling around garbage bags of cash in their trunk. Thankfully, now most i502 retailers have access to basic banking and credit unions that suppor – on premise ATMs, and even some basic debit transactions (with usual ATM-like fees per transaction). Most transactions are still cash and the vast majority of retail shops only accept cash.

One improvement over the past year or so were changes that allow 3rd party security and armored truck companies to pickup and transport cash from retail shops to their place of deposit.

Another recent development here in Washington state is a push by state legislators to block i502 businesses from doing transactions using Bitcoin. This news just broke in the past 2 weeks. Senate Bill 5264 effectively bans Bitcoin from being used in i502. I’ve seen a few “automatic” menu/ordering kiosks at a few retail shops that appear to take Bitcoin. I have not tried to conduct a transaction using Bitcoin. Read more on this issue here: http://www.geekwire.com/2017/washington-state-legislators-look-ban-bitcoin-pot-business/

Insurance underwriting.

Because I’m not an i502 business owner, I’m less up on how well (or poorly) the insurance companies do with underwriting i502 businesses. I know that Lloyds of London was a highly used insurance underwriter, but I also heard that they were getting out of the industry. I would be curious to hear from i502 business owners on your experience in securing and paying for insurance.

We live in uncertain times. I feel for each and every legitimate business owner working so hard to realize their dreams in legal cannabis. Onward we fight.

BDE -∞+

December i502 Report

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Hi guys. I’m working on a detailed analyst report on the i502 traceability data from December 2016.

Until I have it ready to publish, here are a few teaser factoids:

  • Largest concentrate wholesale sale: GreenRush sold 4000 grams of GreenRush Gold Standard Concentrate (Marijuana extract for inhalation) to Clutch Cannabis (in a processor to processor wholesale deal) for $48000 or $12/g.
  • Total concentrates sold (wholesale) to date: 8,688,860 grams
  • Total concentrate wholesale sales to date: $92,958,449
  • Average wholesale price per unit: $8.97

Much more to come. Tables, charts, commentary, analysis.

-BDE

CONSULTING AVAILABLE: INTELLIGENCE, ANALYSIS, AND PERSPECTIVES ON RECREATIONAL AND MEDICAL CANNABIS

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Friends & Colleagues – I will be parting ways with Precision Extraction on January 27. We are leaving on mutually good terms.

As of Jan 28, I will be available for short and medium term consulting projects and related services in the Recreational and Medical cannabis industry across the US. Anything from data mining, market analysis and assessment, processing lab design, compliance, production and processing logistics, business plans, packaging and distribution, wholesale brokering, retailer relationship building, business process automation, software and hardware integration.

My depth of knowledge, 30 years of experience in cannabis, 20 years working in Enterprise Software, and passion for the industry are what I bring to the table with a proven track record and commitment to excellence in everything I do.

Now offering free 30 min phone/online consult and will let you decide if we are a good fit. Feel free to also check out my resume: Brian Daniel Eisenberg – Resume – 2017

Can reach me anytime at:
@eisenetics on Instagram and Snapchat
Brian.eisenberg@Gmail.com
206.294.8205 (8am-11pm pacific time)

-Brian Daniel Eisenberg
Jan 16, 2017