UPDATE: Although the RPC proposal mentioned below is still under consideration by the Washington State Supreme Court, the KCBA Board of Trustees has adopted an ethics advisory opinion to assist the bar in the interim as attorneys consider practice issues under the existing RPCs. The full text of the KCBA Ethics Advisory Opinion on I-502 & Rules of Professional Conduct can be found here.

An interesting question that has arisen in the wake of the passage of Initiative 502 (I-502) — Washington’s marijuana legalization measure — is whether attorneys run the risk of disciplinary action under the state’s Rules of Professional Conduct (RPCs) for advising clients on their marijuana business or for personally participating in the recreational use of marijuana.

Under Initiative 502, both activities are technically legal under state law, however, they remain illegal under federal law, creating a catch-22 situation. When trying to solve this dilemma, the RPCs unfortunately offer no guidance, and there are no ethics advisory opinions that address the issue.

Due to this lack of guidance, Washington lawyers have been left to wonder what the potential consequences might be. Indeed, earlier this month, King County Bar Association (KCBA) President Anne Daly asked in an article on the subject, “where does this leave…the more than 14,000 lawyers in King County who could easily find themselves in [this] predicament?”Continue Reading Ethical Challenges for Lawyers in the Face of State Marijuana Legalization

Over the next few weeks, the Washington State Liquor Control Board (WSLCB) Marijuana Licensing staff will be conducting a series of educational seminars across Washington State. During the seminars, WSLCB staff will be advising potential licensees of the license application process under Initiative 502 and will be available to answer any additional questions.

Those interested in attending can register online. The following is a list of all upcoming licensing seminars:Continue Reading Washington Liquor Control Board Announces Marijuana Licensing Educational Seminars

With several states now moving forward with legalized medical or recreational marijuana regulatory schemes, how to obtain business financing remains a hurdle legal marijuana growers and distributers have yet to solve. As noted in a recent New York Times article, “financial institutions, security providers and landlords that serve marijuana businesses can be prosecuted for…

The DABC unexpectedly decided to forgo adopting an administrative rule interpreting Utah’s “intent to dine” law.  As we discussed previously, the Commission was considering three draft rules that were intended to clarify the steps a restaurant licensee must take to confirm a patron’s intent to order food before a server can furnish an alcoholic …

On Thursday, the U.S. Department of Justice finally addressed its enforcement strategy as it relates to the recent Washington and Colorado initiatives legalizing marijuana in those jurisdictions.  In a memo issued to U.S. Attorneys (PDF), Deputy Attorney General James M. Cole announced that the United States would not sue the states to overturn the voter-endorsed…

The controversy continues over Utah’s so-called “intent to dine” requirement for restaurants licensed to serve alcohol. As we previously discussed, the Utah Legislature amended the law to require restaurants to confirm that a patron has the intent to order food before serving an alcoholic drink. In response to the change, the DABC has proposed …

The Alcohol and Tobacco Tax and Trade Bureau (“TTB”) has accepted for formal review a petition to create another American Viticultural Area in Idaho. The proposed new Willow Creek Idaho AVA would be subdivided from Idaho’s existing Snake River Valley AVA. The petition was prepared by Martha Cunningham of 3 Horse Ranch Vineyards.

Several news sources reported on Wednesday, July 24, 2013, that U.S. Drug Enforcement Administration (DEA) agents raided a number of medical marijuana dispensaries in the Puget Sound area. However, DEA Spokesperson Jodie Underwood did not provide details about how many dispensaries were being targeted or how many search warrants were being executed.

These raids come…

Alcohol and Tobacco Tax and Trade Bureau (TTB) official Susan Evans, the Executive Liaison for State and Industry Matters, talked about ways to streamline the federal label approval process at the June 2013 National Conference of State Liquor Administrators (NCSLA) that I attended in Honolulu. Speaking on a panel, she said that the TTB has experienced reduced staffing and declining budgets, which have slowed down two of its major functions: permitting and approving labels. 

According to Ms. Evans, nearly 25,000 permittees submit certificate of label approvals (COLAs) to TTB . Last year TTB received over 145,000 COLA applications. In the last two years, TTB has imposed fewer restrictions and qualifications, updated the COLA form to allow changes that may be made to labels without TTB approval, and established a virtual file room for processing paper applications electronically. 

In addition, TTB recently reviewed the label approval program and concluded the following:Continue Reading Federal Officials Mull Changes to Alcohol Label Approval Process

Oregon Senate Bill 841 brings finality to the ongoing debate about the appropriate intensity of agri-tourism and other commercial events held at wineries on agricultural land.

Looking forward, wineries permitted under ORS 215.452 are allowed to engage in activities that are directly related to the sale and marketing of wine without local review. These types of activities include wine tastings, wine club activities, winery and vineyard tours, meetings or business activities with wine industry members or vendors, open houses, and similar activities (which appears to be a catch-all allowing for some flexibility). The legislation confronts the debate about on-site kitchens at wineries, making clear that kitchens are allowed under specified conditions.Continue Reading Oregon Senate Bill 841 Provides Some Certainty for Wineries but Leaves Some Wanting

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The Stoel Rives Alcohol Beverage Blog provides wineries, breweries, distilleries, cideries, distributors and importers with articles and information across a broad spectrum of state and federal alcohol beverage law. The authors work on alcohol beverage related projects from our bases in California, Oregon and Washington, throughout the Western United States and beyond.