By Garrett Rudolph
The cannabis industry is changing and evolving so rapidly that we never have a shortage of topics to write about. In fact, more often than not, we run into the exact opposite problem: Too many stories, not enough time. It seems every day in the cannabis industry creates more questions than it answers. With the 2014 election now in the rearview mirror, the past month has been no exception. Just when our staff starts to get a good handle on the rules and regulations of Washington and Colorado, we have two new legal states tossed into the mix.
So I wanted to use this space to address several different topics this month, including the election results and the possible impact on Washington marijuana businesses with neighboring Oregon entering the recreational-use game.
Tax wars
Two big factors stick out when reading Oregon’s Measure 91, which legalized marijuana in a similar fashion as Washington’s Initiative 502 back in 2012. One is the tax rate. The other is the lack of residency restrictions. I wonder if Oregon’s business-friendly tax structure is going to open the eyes of Washington lawmakers and officials within the Liquor Control Board.
Although interstate commerce still remains expressly forbidden, there’s no doubt Washington marijuana business owners are going to be looking across the Columbia River with longing eyes. In one fell swoop, Oregon has situated itself to have the most favorable marijuana laws in the entire country — a low tax rate to give businesses the ability to compete with the black market; legalized home grows to appease hobbyists and medical patients; and built-in provisions regarding control at the local levels.
Meanwhile, Washington’s advantage of being one of the pioneering states is dwindling with each “Yes” vote for recreational marijuana. Being a pioneer only carries weight if you can maintain your head start.
I’ve generally sided with the Liquor Control Board in a lot of its heavy-handed regulations — I think it should be challenging and fairly intensive to obtain a marijuana business license. But to me, the tax rate in Washington is unsustainable. The high cost of legal weed only supports the black market I-502 was supposed to stomp out.
Furthermore, Measure 91’s lack of residency requirements could cause a stampede of prospective business owners to dive into the Oregon market, compounding the already present Gold Rush mentality. I could see business owners in Washington taking their knowledge and experience to the friendlier territory south of our border. And what would that do to the industry in Washington? It’s hard to say, but the bigger question is whether or not Washington lawmakers are cognizant of the possibilities to fix the state’s deficiencies.
Magazine changes
You may have noticed a few changes with the magazine in the past two issues. We’ve revamped the look of our cover and added a couple new sections that we’re testing out as possible regular features of the magazine. The idea behind the new sections is to engage our readers on a more active basis. Our Business Profiles and Product Spotlight give us the opportunity to cover more ground and highlight more
The Roundtable is a forum to discuss hot-button topics regarding the industry.
We’re always interested in hearing your thoughts — the positive and the negative — about what we’re doing. After all, we’re catering this magazine to benefit all of you, our readers. We encourage anybody interested to submit content for the Roundtable or send in letters to the editor on any topic that strikes a nerve, whether it’s a story in our magazine, a regulatory issue or something completely off the wall.
You can email those submissions directly to me at Editor@MarijuanaVenture.com.
You can also connect with us via our website (www.marijuanaventure.com), through Facebook (www.Facebook.com/MJVenture) or on Twitter at MJVenture.
Speak up
And that thought segues into my final topic of the month — and this one’s far more important than flooding my inbox with various comments.
My message is this: Don’t be a passive participant in this industry.
We’ve made it this far because of people who have been willing to speak their minds and have stood up for their beliefs. And moving forward, there will have to be people that do that time and time again.
The battle is long from over. Whether it’s contacting your state legislators, members of the U.S. Senate, local politicians or joining an advocacy group, every little bit of input and influence can help push the movement forward.
It reminds me of the often-quoted line from Laurel Thatcher Ulrich: “Well-behaved women seldom make history.”
Having worked in the newspaper industry prior to launching this magazine, I’ve sat in my fair share of school board and city council meetings. Ninety-nine percent of the time, the only people in those meeting rooms are employees and elected officials. When the council makes a decision that doesn’t sit well with local residents, they all raise hell after the fact. By then, it’s often too late. One key opportunity is just around the corner in Washington, as state lawmakers convene shortly after the New Year for the 2015 legislative session, which should be of extreme importance to anybody in the marijuana trade.
I’m not saying you shouldn’t be well-behaved. I’m just saying it wouldn’t hurt to make a little noise.