The following is the written testimony that I intended to deliver to the WSLCB Board at their public meeting held yesterday, April 14, 2021. Unfortunately, two things got in the way of me achieving that goal.
I apparently read faster in my head than I do with my mouth, so I only got part way through the comments. This is the first time I have actually written out my full comments in advance. That’s how important I thought the message was to get to the new Chair — someone that might just be able to change things in that most troubled of Agencies.
The other problem was that Board member Hauge (“The Prosecutor”) was not present. I’ve worried about him before and am concerned that his absence may be an early indicator that he is falling into the same pattern of apparent non-engagement that he displayed in one of his earlier terms. At that time, he seemed to be conflicted between his public-facing duties and his efforts to secretly whip up the law enforcement marijuana prevention network around the state.
To ensure completeness, I sent the written notes below to the Board after the meeting. They outline my three main concerns– that they recognize and attempt to fix the systemic product quality and consumer protection deficiencies of the current market, that they acknowledge that the regulated medical cannabis system is broken and do something to make it better, and that the new Chair not get sucked into the self-serving bullshit he is being sold by some of the corrupt creatures that report to him that
a) everything is going well in the Agency and “we are all doing a wonderful job” and
b) having access to detailed data about the cannabis market is, in some way, not necessary.
I suspect yesterday’s will be the last LCB Board meeting that I provide input before. Having one’s input ignored wears thin over the years. Perhaps change is best found elsewhere. Either that, or I need serious work on my communication skills (brevity — I know — brevity).
Here is my first (and likely last) prepared-in-advance written testimony for the general comments part of an WSLCB Board meeting.
Be well!
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Good Morning, members of the Board and Staff and welcome, Chair Postman.
My name is Dr. James MacRae, and I am a long-time resident of Washington, an Associate Researcher with CASP (the Center for the Study of Cannabis and Social Policy) and a “quant guy” that is interested in the journey we are on as we move toward the legalization of cannabis. I am the principal of Straight Line Analytics.
I want to take a moment to remember that 6 years ago today, our senate voted 41-8 to pass SSB-5052 — the PATIENT PROTECTION ACT, which set the stage for ending the legal existence of a relatively unregulated medical cannabis market that had existed in Washington State for years meeting the needs of patients who incorporate cannabis into their medicinal and/or nutritional regimes.
That was followed 10 days later by the Governor partially signing the bill into law.
Another significant event that occurred during that period was that on Monday April 20, 2015 the WSLCB responded to a public records request from Dr. Dominic Corva of the Center for the Study of Cannabis and Social Policy by releasing a database containing a largely complete view of the data captured by the BiotrackTHC seed-to-sale traceability system. I hope that the irony of releasing such a treasure trove of information about a cannabis industry on the first regulated 4/20 IN history is not lost TO history.
Let’s move forward to one month ago —the day before Chair Postman assumed his new role.
After 6 years of regulatory creation, destruction and oversight, the regulated medical market exists today as barely a shadow of it’s previous self.
Using DOH data on cumulative patient registry counts, it would appear that no more than 6,200 patients were active in the patient registry as of January 19 of this year. That is less than 1/10 of 1 % of the state population and about 2% of the number estimated to exist in the state by the Agency’s primary cannabis consultant in 2013. It represents less than 0.5% of the approximately 1.5 million consumers that source at least part of their cannabis from the regulated system in Washington today.
Most importantly, 6,200 registered patients represents a decline of almost 75% from the peak that occurred in the summer of 2017. This state’s regulated medical cannabis market is not protecting patients, it is – quite literally in this case — harming them and forcing them to find alternate sources of supply.
Similarly, while at least 1,800 (and, quite possibly, up to 2,500) green cross dispensaries once served the less-regulated medical cannabis patients of this state, there were, as of January 19, only 154 stores able to serve medical cannabis patients AS patients in the state of Washington.
Entire counties do not have active medical access points. There are currently 11 such counties, by my count.
Delivery is not allowed, statewide – including in each of those 11 counties..
Residentially-based regulated medical co-operative grows are immune from neither local objections to their existence nor to the inappropriate sharing of their private personal information by regulators.
Fewer than 5 wholesalers (I believe the number is currently 3) produce product wearing the DOH label and only 1.15% of sales within the regulated system currently reflect partially tax-exempt sales to registered patients.
Homegrow is illegal in this state. That is an embarrassment and, ultimately, a betrayal of those citizens that voted in favor of Initiative 502. It is also a tragedy, given how the regulated system does not deliver on it’s promise of making available safe, accurately labelled product to patients.
I would like to be very clear on this point. Product quality (and safety) is a failing of this regulated market.
Your enforcement division has regularly and repeatedly allowed tainted product to flow to it’s ultimate point of taxation.
Reported cannabinoid levels have been routinely —- and non-randomly — inflated.
Product of sub-standard quality and safety has been routinely presented for sale.
The ongoing mess that this Agency’s chronic mis-regulation has created is not limited to it’s negative impact upon medical cannabis patients and most of the folks that once supplied their needs. It impacts ALL consumers of Washington’s regulated cannabis and, as is increasingly becoming apparent, all citizens that might be impacted by consumers using inaccurately labelled products.
Chair Postman, Board members and staff (who have heard this message in various forms repeatedly over the past 4-5 years) —
PATIENT MISTRUST OF THE QUALITY AND SAFETY OF REGULATED PRODUCT AND OF THE ACCURACY OF THE REPORTED LEVELS OF VARIOUS ACTIVE INGREDIENTS IS WELL FOUNDED.
THIS IS IN NO SMALL PART DUE TO THE VIRTUAL ABSENCE OF EFFECTIVE OVERSIGHT BY THE ENFORCEMENT (and education) DIVISION AND BY WHAT APPEARS TO BE A COMPLETE ABSENCE OF PROACTIVE ENFORCEMENT EFFORT.
Suspending PRAXIS’s Laboratory Certificate would seem to have been a good move. BAD LABS SHOULD NOT BE ALLOWED TO ENABLE CANNABIS BUSINESSES REGULATED BY THIS AGENCY TO LIE TO THEIR CONSUMERS. Suspending such labs would seem to be a good thing. Going after the other ones would be a nice next step.
As you bask in the glory of nailing a bad lab, you may want to ask yourself, WHY DID IT TAKE THE APPARENTLY SUBSTANTIATED COMPLAINT OF AN EMPLOYEE TO BRING PRAXIS’ ALLEGED MALFEASANCE TO THE ATTENTION OF YOUR AGENCY?
Honestly — many of the 1,600-odd cannabis business owners know quite well which labs are “good” and which are “bad”. Given the market your enforcement has enabled, knowing such things has become a key success factor for many. It is what we used to call in big business a key lever regarding business success.
I recently noticed that the agency issued it’s first ever mandatory product recall of cannabis late last month. Given the past 6+ years, frankly, I was surprised by that action. I would like to acknowledge it as what it seems to be – a step in the right direction.
I WAS also encouraged to see your recent posting for an analytic position to serve your enforcement and education efforts. I hope that creating that role represents real change. If you staff that role well and allow it to function, the results could make a huge positive difference in both the Agency’s understanding of this industry and the realization of your policy goals. I suspect they could help with some alcohol, tobacco and vape-related issues as well.
As staff try to convince you that doing away with a complete repository of traceability data is a good way to take “Cannabis 3.0” into a world without undue Federal obstruction, I would strongly advise you to not let Staff’s failed efforts over the past 48 months to implement an accurate, complete, functioning traceability system color your thoughts on the issue.
Centralized, complete, timely and accurate traceability data is crucial to understanding and to being able to effectively regulate and enforce this market. Federal legalization — when it ultimately comes — will not magically eliminate the benefits of being able to regulate and oversee this potentially multi-billion dollar market both efficiently and effectively. The state’s ability to realize the huge upside revenue potential that remains untapped among cannabis users in this state also depends, in part, on this agency getting a handle on the atomic data that describe the industry and the larger market(s) in which it operates.
I wish you well in those efforts.
Please – Do something to fix medical. Do something to fix the labs. Do something tangible to address consumer safety.
Do something to fix traceability. Become the experts that others need to make well-informed policy, legislation, and rules.
This state is in acute need of having it’s legislators make better policy and legislation for cannabis, it’s users and those who trade (legally) in it.
Thank-you.