Entrepreneurs looking to cash in on Washington's new pot law
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VANCOUVER, Wash. – The historic haze lingers as people celebrate a landmark marijuana law in Washington.
State leaders are now struggling to hammer out regulations, and entrepreneurs are looking for ways to cash in.
It will be at least another year for the state to establish rules on the budding marijuana industry, including licensing businesses to grow or sell marijuana for recreational use.
"At this point we're taking a wait and see approach," said Chad Eiken with city of Vancouver Business Development.
City business development managers are in limbo until they figure out what's legal and what's not.
"There's no ability to grow or sell marijuana legally under the initiative," Eiken said. "The state Department of Liquor Control has a year to come up with rules and regulations around who can sell, who can grow and who can distribute."
Already there's concern that criminals will try to corner the new market.
"I certainly would urge individuals not to go out and to purchase marijuana from illegal sellers, because it is illegal for that individual to sell that marijuana; it's an illegal activity," said John Fairgrieve, Clark County chief deputy prosecuting attorney. "Unfortunately, buyers of controlled substances or drugs get robbed on a pretty regular basis."
But it may be capitalism, not cops, that best safeguards would-be pot smokers. Wall Street-style capitalists and entrepreneurs also have their eyes on this new cash crop.
Like cannabis coffee houses in Amsterdam, Jamen Shively has a vision for high-end pot houses catered to marijuana smokers with discerning pallets.
"The main reason for me is about transforming our society's relationship with this incredible herb called marijuana, transforming it from one of criminality, where we are arresting 800,000 people a year and destroying people's lives, to making it something that is tolerated and actually controlled. The time is now to take advantage of this momentum," Shively said.
In fact, a major Wall Street trader just signed on to support Shively's vision of opening a Starbucks-like chain of stores. And two Yale MBAs have started a company called Privateer Holdings, which is the first equity firm in the nation to focus exclusively on making money by investing in marijuana businesses – all of which is actually a major concern for the grassroots folks who've been pushing pot.
"We don't want large corporations in here taking over these businesses," said Madeline Martinez, a National Organization for the Reform of Marijuana Laws board member. "We want to run them, and we want to run them better than we see other corporations running or other businesses in running in this country. And there is that danger."
Martinez worries mega-pharmaceutical companies, agribusiness giants, investment firms and tobacco manufacturers will drive local business owners out of the emerging market.
Business owners like Tim Berg, a longtime glass blower who used his skills to start a shop after medical marijuana laws passed, said he's noticed the number of manufacturers of pot-related products is getting higher as more states legalize pot for medical and recreational use.
"Before the medical marijuana happened, you would never see that product on the shelf, because it has been tailored to the medical marijuana community," Berg said, owner of "Vaporized" Pipe Shop. "Now there are dozens of companies out there."
At least one person in the local legal community agrees the new law is written to let conglomerates take over the market and treat mom-and-pop operations like moonshiners. He plans to file the first legal challenge to Washington's marijuana law Friday morning.
One question: Why would you Import from Mexico? We grow fine weed here in the USA. Haven't we learned anything about growing our own economy? If you're going to sell it here then grow it here; too many jobs going out of this country! Made in the USA is the only label marijuana needs!
This is a bad idea. Drugs harm the human psyche in ways unknown. It attacks the conscious awareness of human being so that they are uninhibited. Any doctor will testify that drugs that attack the awareness of the individual makes them less inhibited and others can have their way with them. Our leaders need to stop using the people as tax machines -- selling them stuff that keeps them a slave to their senses. What they should be doing is acting responsibly by following good advice from sound medical instituitions.
"We don't want large corporations in here taking over these businesses," said Madeline Martinez, a National Organization for the Reform of Marijuana Laws board member. "We want to run them, and we want to run them better than we see other corporations running or other businesses in running in this country. And there is that danger. "Martinez worries mega-pharmaceutical companies, agribusiness giants, investment firms and tobacco manufacturers will drive local business owners out of the emerging market."
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This is really funny. She is really ignorant of how life works.
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If there is money to be made one can count on capitalists getting in on the action. Her idea of utopia comes from smoking too much pot and living life with her eyes closed.
@RalphCramden --- right you are Ralph, I think she's on drugs.
 @The Resistance Â
And probably welfare.
Two problems with Washington law; first, it doesn't allow a smoker to grow his own stash and, Second, there is no ready plan for legal sales and taxation.
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This short-sighted approach creates a natural market for "entrepreneurs" who don't waste time with hand wringing, and bureaucratic horse-manure.
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The natural short-term solution is to initiate a tax stamp system. Sell tax-stamp Zipties for commercial production, require that product have a tax-stamp for transportation and distribution.  This creates an environment where tax revenue is generated immediately and lawful entrepreneur/producers can be readily identified. The penalty for not participating, buying tax stamps, is having product seized and taxed and sold by the state. Any tax-avoiding production facilities could be seized and used to produce product for state sale.
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Everyday that passes without some action to collect revenue by the state represents millions of dollars lost to the state budget.Â
 @IcarusÂ
This law will do nothing to stop illegal activity. People will still grow it and sell it without paying any taxes. Police will arrest and charge folks for tax evasion.
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It was poorly thought out and will be poorly implemented. It may even create more violence as drug dealers step in to sell their "product" and work to eliminate their competition.
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The bottom line is that it will be cheap entertainment to watch the whole thing play out.
 @RalphCramden  @Icarus Poorly thought out?  They haven't even put in the structure to make, process and sell it.   Way to jump on the neighsayers train before it has even left.  The liquor board states it might not have anything together until the end of next year (2013).  To even being to talk about the "success" of it is premature and basically talking out of your ass.
 @Icarus I'm an amateur distiller and was recently asked for advice on how to make "tincture." In this application, it's one part alcohol and one part weed. But the irony is, you can't get 190-proof (Everclear, Clear Spring) in Washington. They have to come to Oregon to get it. An interesting thing about that, of course, is that the Everclear is already taxed.
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Apparently, they're selling an eyedropper full of the tincture (probably a dollar of alcohol and a dollar of weed) for $40. I don't know if you use it on toothaches or what, but, dang.
Wow this is better then any soap opera,all this c**p talking going on. All I want to say is that for anyone out here that thinks that just because it is legal now that all the smokers will start being stupid,well those  of you who think that are just jacknutts. Smokers will keep doing what they have done for centries rather legal or not. If they already smoked and drove then they will continue if they never did then chances are they won't start now. I'v also noticed that for the ones that say potheads are dumb those are the same one's who can't spell,just look at all the comments. I don't care if you smoke or drink Booze just do it responsibly. As far as the new laws,they aren't even worth commenting on because this is all so new that alot that your hearing about is just talk at this point. As far as these smoke houses that want to open well It would be ok if everyone who went there walked or got a ride beings that it is still illegal to drive High,personly I won't use them but hey more power to them.
I've figured for years....legalizing, regulating and taxing the marijuana industry would be a big boon for the economy.
Don't care. People that want to do it, have been doing it and will continue to do it. Legal or not. Removing the illegality frees up the police and our courts to deal with much more serious efforts. And the tax revenue could possibly keep the needy legislators from raising other taxes.
It will be interesting to watch for "unintended consequences" of this new law.Â
 @Saltire What? The unintended sales boon at 7/11 and Pizza Hut when stoners get the munchies and order pizza or go to the nearest 7/11 to get Slurpees?
 @pdxd  @SaltireÂ
The unintended sale of pot without the tax stamp. Police will arrest growers for tax evasion instead of marijuana possession. Governments take a very dim view of tax evaders. In fact some tax evaders get more time than those charged with manslaughter.
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Then the drug dealers will be selling pot illegally and circumvent the system and will do whatever to "kill" off the competition. Maybe the Mexican drug cartels will go into business in Washington.
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The breakins at growing facilities will drive the need for security and once one of them is killed they will have to be armed.
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Overall the process will be entertaining to say the least and I look forward to watching it.
 @RalphCramden  @pdxd  @Saltire It more entertaining to watch you run around and spew ideas that have no basis for and act like you know what is going to happen.  I think you just Cramden that idea up the place it came from, Ralph.
 @Saltire They may be unintended to the deluded and delusional, but I already know they're gonna happen.  Well put anyhow...
 I think its a great Idea. Another major industry for the grate northwest to replace the dyeing lumber industry.
 @Hippie Land ....that's "great" and "dying" but hey, it's all good.  Burn another one and party on, Garth....;-)
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 @'CouvGuy No thats Grate as in Grateful dead.
I think this is a great idea. It would be a source of great revenue, but I say keep it local and never go corporate. We need more small business to stimulate local economy.Â
I watched the newscast last night about the guy that's setting up tours. He says he's already booked three tours. He looks creepy. I'd highly recommend not wasting 275.00 on that.
Somehow the old song "stop the world and let me off" means more to me then ever!!!
 @Zechariah Hey, no need to stop anything for you to get off. You can leave anytime you like.
 @Zechariah People like you didn't want microbreweries legalized in Oregon because it would turn everybody into alcoholics. There are now too many outstanding, world-class microbreweries and distilleries in Oregon to count, but Oregon beers are on the menu in the finest restaurants in New Orleans. Oregon beers are known worldwide.
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Why do you hate business?
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You represent the same people who ALSO won't let us grow hemp on our property even though it's perfectly legal to grow poison oak and himalayan blackberries. Because of people like you, it would cost me about $250,000 to operate my absinthe still in order to deal with the lawyers and bureaucrats. It would cheaper to just sell it on the black market for $50/bottle, but, I don't.
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People are tired of the fact that because of people like YOU, the worst and scariest side-effect of marijuana for most people is the consequence of getting caught by people like you. This has been exhibited by the voters of Washington. People are tired of people like YOU degrading their fathers, or veterans, or co-workers or siblings who use it, and for trying to destroy their lives if they're caught using it simply because you don't approve.
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I have the exact animosity for homophobes, and I'm not gay. I have the same contempt for people who tell me I can't operate a gas pump at the Chevron even though I can fuel my boat, and I've refueled airplanes from Texas to Alaska.
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 If you really want to stop the world and get off, are you going to blame liberals for your failure to do so, or is all of that just mental diarrhea? Go ahead.
 @Playanekes  @Zechariah Hmmm. about half I agree and half I don't. I want nothing to do with anyone who smokes marijuana period  I am not afraid of homosexuals, I think they overglorify and make their 'cause' over important in Portland. You can twist that around to mean I'm homophobic. I neither care nor agree.
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 I'm right with you on the gas pumps. However, I noticed gas isn't less expensive in Washington, so if that's the point, it's defeated.
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I'm all in support of you being able to operate your absinthe still,andnot pay a quarter mill.... I love business. Don't equate one thing with another.
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I simply don't want,need, or care about giving anyone special rights or changing any drug laws. Â They are not worthy of changing since it means more of my tax money is spent,and if you believe it will in the long term solve Washington's hyper uber liberal spending problems and thus debt, you are very gravely mistaken.
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 I guess we'll see in a few years.Â
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A combat veteran in my opinion may use marijuana as much as he likes. Â he, and he alone, has truly earned the right. Â No truck there.
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 Now, marijuana in public? I detest the smell and I can detect it about a quarter mile away.  In a house? fine and dandy, no problem there..
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My 1 cent's worth....
 @Zechariah What have you done to make the world a better place besides complain about what is wrong with it?Â
 @PDXBEAR  @Zechariah That's a great question, PDXBEAR. I'm thinking in his mind his contributions have been of biblical proportions. lol
What kills me is that I can't smoke a cigar in a cigar store, and these guys are talking about "....high-end pot houses catered to marijuana smokers with discerning pallets....".  I guess smoking is OK after all, depending on what you smoke.  Seems pretty hypocritical to me.And here all this time I thought $20.00 cigars and $150.00 scotch was pretty discerning.  Have to give that some thought.
 @'CouvGuy Pretty much everyone agrees on this... well said.
 @'CouvGuy You've never been to a cigar bar? Wow, Couv, you need to get out more. There's some fine ones. I like the Riverview. Kennedy School has a nice one too.
 @Lips  @'CouvGuy I've been to a ton of wonderful cigar bars....in Oregon.  Currently in WA state, it's illegal to smoke in any public establishment, or within 20' of any air intakes for same.  Guess you can have pot smoking houses, but can't smoke a cigar in a cigar store.  Figure that one out.
 @Lips  @'CouvGuy Red Shed, the nice lounges at Shiloh, Kennedy school, Cascade Cigar...been to most, visit now and then.  Not in WA....except on tribal land...;-)
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 @'CouvGuy  82nd ave tobacco has a smoking lounge. Great selection too!
 @'CouvGuy  @'CouvGuy That's crazy! I didn't know. I'll occasionally go to the Lil' Red Shed and have a few puffs, but never knew they didn't have them in WA. WA and Oregon need to get on the same page.
 @'CouvGuy I don't smoke but I've always thought that there ought to be smoke-friendly businesses where everybody knows the risks and people can choose to hang out there all they want. I hate cigarette smoke but I would fight for such a law because it represents liberty.
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You should be able to open a cigar lounge, or a smoking establishment, and serve the same public that allows McDonald's to sell its children bacon double cheese burgers and french fries.
 @Playanekes  @'CouvGuy I agree completely.  It just seems so simple to me - let the MARKET decide.  Pass a "signs required" law; if you allow smoking in your establishment, require a sign by all the entrances that says "SMOKING ALLOWED".  Let non smoking establishments post a "NO SMOKING" sign and see which establishments are busy, which ones are not.  Let the public vote with their dollars and let the management decide what's best for them.  I mean, why would you go in a cigar store if you didn't smoke cigars...??  Seems ludicrous to me.
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But, I guess if you smoke POT apparently there are ways for businesses to accommodate smoking indoors.  In the same state where cigars are banned.  Figure that one out......
 @'CouvGuy  @Playanekes  @'CouvGuy Same can be said for the hookah bars, here. Why them and not cigarets? I smoked my last cig in August, but still have my dog in the fight.
The whole friggin' legalization process is 100% BS..... Washington State leaders and others are only creating a larger Black Market for marijuana.... Lawsuits are being filed pertaining to the state providing monopolies for big business to cash in..... In addition the whole tax the poo out of it mentality will continue to drive others to buy it from Outlaw growers...... You can possess up to an ounce of marijuana with nowhere legal to buy it..... You can buy a smoking device with nothing to smoke through it...... cluster flub.... California has the best process so far......
What? So no people who are pro-legalize are already filing against the law because they think the market share could go to businesses that seek profit? Is this for real??
@moej Sadly moej, this is your new reality.
The cage they built us all is now getting cluttered with more soon-to-be alhiemers patients full of memories of grand delusional HIGH TIMES that paid dividends well.
Perhaps we sober minded ppl can create something they could all use like reusable napkins for when they all get the "marijuana" munchies and cannot stop eating?
Just a thought...
 @Zechariah  @moej The word is Alzheimer's, there, Einstein. I suppose you're an expert.
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My grandmother died of Alzheimers and my great aunt is dying of it now. If you were to have ever accused either of them of smoking pot, they'd have punched you in the mouth long before their ex-POW husbands got hold of you.
 @Playanekes  @Zechariah  @moej
@Playanekes
Thank you for your thoughtful, albeit heart breaking, comment. I am so sorry your family has been touched by that horrible disease not once, but twice. I wish you and your family a lot of love and support!
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@Zechariah - I think you should spend some time volunteering to watch an Alzheimer's patient so their spouse can get a few hours respite. It is a horrible disease and just devastating to the patient's family (especially spouse). There is no link what-so-ever between any drug use and Alzheimer's. There IS a correlation between drug use and some forms of mental illness (Alzheimer's isn't a mental illness, but a disease)--largely some type(s) of psychosis that doesn't wait 50+ years to manifest and is more prevalent among drug users who used more than just marijuana. And before you accuse me of being a marijuana user, I assure you I have never, in my life, smoked anything--legal or illegal.
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As the human race spirals downward to lower lows, the money grubbers will always find a cyphen vent to reach into like ones proposed. Supposedly the potheads will obey the laws they will mfg, Â Like before Never did, so why now? Zebras don't change their stripes!
Now they just have "More Excuses" to be irresponsible as before.
If this is all they can do for a victory of sorts, then I would say clear your fogged brain up for 5 minutes and Observe your enigmatic dilemma hasn't changed one whit!
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Such a wonderful accomplishment by the human race, we should all be proud of ourselves.
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 @Zechariah OK. I celebrate liberty. The binky-sucking nanny-state Taliban types can go f--k themselves if they don't like it.
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Sic Semper Tyrannis.
The joke is on! What a bunch of  peepee heads. All this crap ought to last about as long as or even way less than Woody's oxygen bar. Personally I didn't even care if the law changed although I do agree that IT'S ABOUT TIME THAT IT DID !!!Â