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The OLCC announced on May 1st its approach for addressing the implementation of recreational marijuana in Oregon. The OLCC appointed a Rules Advisory Committee (“RAC”) made up of 15 members. The RAC will meet once a month starting June 19, and represents the marijuana industry, local government, law enforcement and the general public.

In addition to the RAC, the OLCC appointed subcommittees to develop draft rules for the different areas related to the regulation of the marijuana industry: Growers, Processors, Extracts, Retail, Advertising/Labeling, Licensing. The subcommittees began meeting the week of June 1. The Growers subcommittee met for the first time on June 1st. The goal of the meeting was to establish an agenda for the next couple of months, addressing issues like: production limits, tracking, licensing, waste disposal, use of natural resources, security and transportation. According to the reaction of the subcommittee, it seems like the main points of discussion will be the establishment of a tracking system, the level of tax to apply, as well as the impact on natural resources (water law, electricity, land use).

The OLCC staff also plan on hosting meetings with other agencies to discuss the impact of recreational marijuana on different areas: land use, banking, energy, and other issues.
Continue Reading Implementation of Measure 91: the OLCC is Picking up the Pace

Following in the steps of Washington and Colorado, Oregon voters passed Ballot Measure 91 (PDF) on November 4, opening the door to legalized recreational marijuana in the state. Beginning July 1, 2015, the Control, Regulation and Taxation of Marijuana and Industrial Hemp Act allows Oregonians 21 years and older to possess up to eight ounces…

To considerable fanfare – and the occasional stumble – the legal recreational marijuana industry opened for business in Washington state last week. So far, the Washington State Liquor Control Board (WSLCB) has issued the state’s first 24 marijuana retailer licenses, representing the first of 334 licenses allotted by the WSLCB for retail sales who have successfully completed the Initiative 502 licensing process. Now that sales of legal marijuana and marijuana-infused products have commenced in the state, many are asking about the quality and safety of these products.

Like other food and beverage items we ingest, marijuana products can contain mites, molds, and even foodborne pathogens such as E. coli. In order to stave off potential health and safety risks, WSLCB mandated that all marijuana products undergo rigorous quality assurance testing by certified labs. In fact, as Dan Flynn at Food Safety News reports, “Washington state is off to a safer start than Colorado.” According to Flynn:…

Continue Reading Compliance Checklist for Mandatory Quality Assurance Testing of Marijuana Products

Hundreds of eager customers lined up outside of Washington’s newly licensed marijuana retailers on Tuesday to make history by participating in the first legal sales of recreational marijuana in the state. Earlier this week, the Washington State Liquor Control Board (WSLCB) issued the state’s first 24 marijuana retailer licenses. These businesses represent the first of…

The U.S. Bureau of Reclamation provides irrigation water to one out of five farmers in the Western United States. According to Reclamation, the irrigation water it provides is used to produce 60% of our nation’s vegetables and 25% of our fruits and nuts. But Reclamation is now deciding whether to leave one Washington crop high and dry: marijuana.

Washington recently issued licenses that allow licensees to grow marijuana. But the cultivation, possession, use, and sale of marijuana remains illegal under federal law. This tension between state and federal law is forcing Reclamation to analyze whether it can provide irrigation water to contract holders who plan to grow marijuana.

The timing of Reclamation’s decision is important because the irrigation season is rapidly approaching in many parts of Washington and has already arrived in other parts of the state. The Olympian reports that Dan DuBray, a spokesman for Reclamation, recently said that Reclamation will make a decision on this issue by early May, and perhaps as early as this week.…

Continue Reading Will Bureau of Reclamation Leave Washington’s Marijuana Crop High and Dry?

According to a new comment adopted by Colorado’s Supreme Court last week, Colorado lawyers who provide legal services to state-regulated medical and recreational marijuana businesses will not violate the state’s Rules of Professional Conduct.

The rule change added the following comment to Rule 1.2 regarding the scope of representation and allocation of authority between…

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…

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…

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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.