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Washington Liquor and Cannabis Board Proposed Rules Are Out

The Washington State Liquor and Cannabis Board (WSLCB) Proposed Rules are out. If you are serious about getting into the cannabis industry in Washington State or taking advantage of the new licensing opportunities, these are the proposed rules that you will have to live by.

If the rules need to be changed to allow for your business plan, this is the chance to change them. If you love something about it you still need to advocate that it stays untouched.

Rulemaking is a process with a bureaucratic organization. In order to be effective in rulemaking you need to know what works within that organization. If you are going to put your time and or money into shaping rules, your only consideration needs to be how to be effective.

Firstly, be knowledgeable about the subject. If you want the rulemaking body to take you seriously, then you should be prepared to have an intelligent conversation about what the law is and what the proposed rules say. Always make sure that you are on the current version of the law and rules.

In this case the relevant laws that are driving the rule making are 2SSB 5052 15-16 http://lawfilesext.leg.wa.gov/biennium/2015-16/Pdf/Bills/Session%20Laws/Senate/5052-S2.SL.pdf and 2SSHB 2136 15-16 http://lawfilesext.leg.wa.gov/biennium/2015-16/Pdf/Bills/Session%20Laws/House/2136-S2.SL.pdf. The WSLCB Proposed Rules consist of two documents, the Emergency Rules (OTS 7400.1 http://www.liq.wa.gov/publications/rules/2015-Proposed-Rules/OTS-7400_1Final.pdf CR 103) and the proposed rules (OTS 7401.1 http://www.liq.wa.gov/publications/rules/2015-Proposed-Rules/OTS-7401_1Final.pdf CR 102).

The Emergency Rules have been adopted by the Board already and expire on Jan. 21, 2016. The reason for this was to be able to accept applications before the rules are finalized. The same basic verbiage is used on both documents. They also appear very similar.

When you are asking for changes in Rules, make sure that you are specific about what it is that you want changed and make sure that you suggest the changes. Don’t make them have to look things up. Be very descriptive and include the language of the Rules. Be polite and to the point. Here is an example:

Please consider the following changes:

Proposed WAC 314-55-18 (New Section)

(1)The following must be available for inspection at all times by an enforcement officer of the WSLBC:

(a) All licensed premises used in the production, processing, storage, transportation or sale of marijuana, usable marijuana, marijuana concentrates, marijuana-infused products, or any premises or parts of premises used or in any way connected, physically or otherwise, with the licensed business.”

While I believe that the intent of (a) is to give the Liquor and Cannabis Board the ability to inspect storage and ancillary commercial spots that may comprise an licensed entity, I believe that this may be broadly interpreted to mean private residences of true parties of interest. It should be clarified either way. As we do not believe that private residences are the intended subject of search, I suggest the following changes to (a):

(a) All licensed premises used in the production, processing, storage, transportation or sale of marijuana, usable marijuana, marijuana concentrates, marijuana infused products, or any non-residence premises or parts of premises used or in any way connected, physically or otherwise, with the licensed business.

I believe that these changes are in line with the legislative intent of I-502, 2SSB 5052 and 2ESHB 2136 none of which seem to have any intent language of giving the Liquor and Cannabis Board search authority of private residences. Potential searches of private residences would also seem to be at odds with the 4th Amendment of the U.S. Constitution as well as Section 7 of the Washington State Constitution’s prohibitions on unreasonable searches.

Making the above changes will clarify the law preventing possible issues while maintaining the intent. If it is believed that the Liquor and Cannabis Board needs the power to search private residences, clarification language should be added to (a) that says:

Private residences may only be searched by the WSLCB with a Warrant as defined in RCW 69.50.502.

In the above example we are seeing something that a rulemaking body is likely to understand. They did not have to look up the reference. They have given a very specific ask. What they ask is not ridiculous. We have taken the trouble to look at the Legislative intent. Remember, your task is to be effective, so you need to put in the work to be effective.

I would also say you should work with others in industry groups and attempt to get group consensus. This makes it more likely that the person that is reading it will care. Also, working with professionals is a good thing. I would say, as an entrepreneur you should make sure, even if you are working with others, that you read these documents yourself.

No one else is going to be able to judge what will impact you as good as you will. Never trust someone else with the future of your business.

John Davis

John Davis

For the past 20 years, John Davis has fought in the trenches and with his wallet and business interests (not to mention sticking his neck out nationally!) to work diligently to end prohibition in his home state, Washington and on a national level. In addition to being the Chairman of Seattle Hempfest, John is a founding member of the Coalition for Cannabis Standards and Ethics, a board and founding member of the NCIA and a leading policy expert working on international cannabis policy reform.

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