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AUTHOR: Rob Hendrix
PUBLISHER:  CANNABIS LAW REPORT

Rob Hendrix

My name is Rob Hendrix. I live in Ellensburg, Washington. I have been married to the same girl since 1979, I have three kids and five grandchildren. I have lived in the same house since 1991. I have a BS in Economics from Central Washington University, class of 1982. I am the very last person you would ever expect to own a pot shop.

For me the journey started in December 2013. We applied for a license to own and operate a retail cannabis store in Washington State following the passage of Initiative 502 in November 2012 legalizing recreational use of marijuana.

We began receiving calls from our licensing specialist, a very hard working State worker named Kimberly, in mid January 2014. We were informed during these first few calls the first legal cannabis stores were slated to begin opening in July later that year and that she wanted us to be in the first flight. Further, we were informed we, my wife Diane, and I would both be subject to two different background checks; a FBI as well as a Washington State Patrol background check. Kimberly also walked us through the personal finances portion of the checklist to become eligible for a retail license. This seemed simple and straight forward and perfect for us as we did not have a very complicated portfolio; a house with a mortgage, two cars, a paltry savings account.

Washington State decided early on the best way to award limited numbers of licenses would be by lottery. We had to disclose our finances on a monthly basis, we had to prove residency, we had to have chosen a suitable and approved location to include a rental/lease agreement or a signed valid mortgage on said property. (This was an interesting step in the entire process. The State mandated the prospective location of any cannabis business must be at least 1000 feet from schools, hospitals, librairies, dayare facilities, any parks. Ellensburg is not a big town and it is a fairly conservative town so finding a location that both met State requirements and one who’s owner would look favorably on that location being used for a cannabis business was very, very difficult. We succeeded ultimately but just barely. That is another fascinating story but one we do not have time for here)

As we worked through the Spring toward the May 5 lottery day, it became apparent there would be seven (7) qualifying entities in our hometown of Ellensburg where the State had previously decided two (2) stores would be located. As you may have guessed, we were chosen #2 but we actually opened the very first retail cannabis shop in our City and County, but I’m getting ahead of myself.

This is a very brief account of the vetting process in Washington State to obtain a retail cannabis license to operate a retail cannabis shop. In Washington State, the Cole Memo issued by the DOJ back in August 2013 was always the backdrop for all rules, regulations, WACs, RCWs etc. I am sure that even though the Cole Memo has been metaphorically speaking “torn” up, New England, I am confident will create a very similar path for the citizens application process. Verifying residency will be a key, verifying a lack of any significant criminal background, verifying to some degree an ability to open and operate a business, verifying locations and all employees are all going to be key components in garnering the spot in a lottery should your State choose that path.

In Washington State our regulatory agency charged with overseeing all aspects of monitoring cannabis businesses including enforcement is the Washington State Liquor and Cannabis Board, WSLCB, usually referred to as the LCB. The LCB has access to all financial and transactions records via what is known as traceability. Its nearly a certainty that New England States will have a similar system in place. This is necessary among so many other controls to keep the Federalgovernment at bay so cannabis businesses can actually conduct business without fear, hence the absolutely necessary adherence to the letter as well as the spirit of this memo.

Your privacy will not be a high priority with your State or the Federal government. Since cannabis is a Schedule 1 Controlled Substance, officially and technically you are about to become drug dealers and money launderers. The scrutiny is something to behold and a facet of this industry that, at least for now, must be fully accepted and dealt with daily. No matter whether you are located in Vermont or Massachusetts or anywhere else for that matter including my home State of Washington, scrutiny and oversight will become part of your daily routine.

There will be many questions, many roadblocks, many impediments in your journey should you choose cannabis as part of your future. Do your research, your due diligence. Knowledge is power and education and preparation will get you successfully through anything anyone can throw at you. It has been life changing for me and my family, but was never easy and therefore I say it is not for the faint of heart. But then again, if it were easy, anyone could do it!

Rob Hendrix, owner

Cannabis Central of Ellensburg

Cannabis Consulting Nationwide

www.cannabisconsultingnationwide.com

509-833-5556 (cell)