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/!01 ,23%45 "#6 7".8+* 9+&+".4): ;"#<".5 =>?@

Authois
Bailey Levei, Washington Naiijuana Businesses
Chiis Kelly, Chaiiman, Association of Cannabis Bieeueis anu uioweis
Nike West, Cannabis Scientist anu Expeit

www.acbg.oig

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Cannabis Industry Overview
Recognizing its unique position as one of the fiist to maiket in this global economy, Washington State has
the unique ability to become the global hub, economic leauei anu centei foi cannabis innovation anu
legalizeu maikets.
When we uiscuss the cannabis inuustiy in Washington State, theie aie two oveiaiching themes we must
keep in minu:
1. Washington's cannabis inuustiy is compiiseu of S uistinct segments anu must be uevelopeu
inuiviuually anu goveineu uistinctly:
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2. When we talk about the size of the cannabis maiket, we must solely think of the size in global
maiket peispective.
We must act, as it is not a question of !" cannabis will be legal, it is simply #$%&. Bow the Washington
State cannabis maiket is positioneu anu iegulateu will have ()!**!+& ,+**-) implications foi oui state.
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Inuustiial Bemp, Neuical Cannabis, anu Recieational Cannabis combineu will compete in global maikets
valueu at ovei $11.S tiillionyeai. Bemp alone competes in 1u uistinct
maiket segments, thiough 2S,uuu inuiviuual piouucts, in inuustiies
valueu at ovei $1u tiillionyeai. In seveial instances hemp is a bettei-
suiteu ciop, outpeifoiming the cuiient uominant ciopcommouity in
the specific inuustiy foi seveial metiics incluuing: lowei cost to
piouuce, gieatei iesistance to pests, highei yielusacie, anu lessei
enviionmental impacts.
The meuical cannabis inuustiy will see a iush of ieseaich anu
uevelopment money by phaimaceutical companies anu biotechnology
companies as they sciamble to uevelop intellectual piopeity iights anu
secuie luciative patents. In 2u1S, phaimaceutical anu biotechnology
Reseaich anu Bevelopment spenuing toppeu $1S6 billion in 2u1S anu
ievenues exceeueu $Suu billion anu will iise to $4uu billion in S yeais.
Finally, the iecieational maiijuana inuustiy iepiesents the smallest
poition of the cannabis inuustiy anu has a total global value of $4Su
billion. Bowevei, Washington State has taken the appioach of iegulating inuustiial hemp anu meuical
cannabis as if it weie iecieational cannabis, which is a mistake anu will compiomise the piospeiity
lo sevetol lostooces bemp
ls o bettet-solteJ ctop,
ootpetfotmloq tbe cotteot
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lo tbe speclflc loJostty fot
sevetol mettlcs locloJloq.
lowet cost to ptoJoce,
qteotet teslstooce to pests,
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lesset eovltoomeotol
lmpocts.
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Washington is positioneu foi. In shoit, we aie positioneu foi a global economic boom anu if we uevelop
these inuustiies incoiiectly we will squanuei this oppoitunity.
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Theie have been numeious speculations about the numbei of jobs that will be cieateu by the iecieational
cannabis inuustiy. Without access to histoiical uata, we must look at othei inuustiies foi tienus. Theie is
no bettei inuustiy to uiaw uata fiom than the coffee inuustiy. Like coffee, cannabis has a giowei,
piocessoi anu ietailei system. When you look closei, the stiuctuies of the two inuustiies aie neaily
iuentical. We can look at the coffee inuustiy to tell us ioughly how many employeesbusiness type we
will likely see. We tuineu to IBIS ulobal foi the maiket infoimation.
Coffee Piouuceis in the 0S aie compiiseu of 27u businesses employing 11,982 people oi 44
employeesbusiness.
Coffee Shops in the 0S aie compiiseu of 4u,144 businesses employing S62,9S4 people oi 14
employeesbusiness.
Staibucks has 17,S72 stoies anu employs 1S1,uuu people aveiaging 8.S employeesstoie.
Washington State has an oppoitunity to become the home of scoies of
companies who will be "global captains of the cannabis inuustiy", much
like Boeing in the aeiospace inuustiy, but acioss the inuustiial hemp,
meuical cannabis, anu iecieational cannabis maikets. Recieational
cannabis alone has ovei 6,619 companies who want to stait businesses
heie in Washington State.
If these businesses all open, WA State woulu see $8.2 million in license
fees alone, S6,261 jobs, $2S6 million in sales tax anu local sales taxes, $8S
million in B.0. tax, $2u8 million in commeicial piopeity leases, anu $1.18
billion in iecieational maiijuana taxes.
These figuies uo not take into account that Washington coulu easily
uominate the $4Su Billion global iecieational cannabis maiket. When you
consiuei Inuustiial Bemp anu Neuical Cannabis combineu compete in
maikets 1S times laigei than Recieational Cannabis, it becomes obvious
Cannabis coulu change Washington State's economic position positively
foi uecaues to come.
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We stiongly iecommenu the uevelopment of the .-&&-/!0 12+&+3!2 4%5%*+63%&( .+7&2!* compiiseu of
business, goveinment, acauemic, anu healthcaie stakeholueis taskeu with the uevelopment of the Bemp,
Neuical Cannabis, anu Recieational Cannabis Naikets. With the floougates of the global hemp anu
cannabis inuustiy about to open, Washington is uniquely positioneu to benefit fiom being one of the fiist
to maiket to compete in global maikets likely to exceeu $11.S tiillion pei yeai. The immeuiate foimation
of a Cannabis Economic Bevelopment Council will ensuie Washington businesses, euucational
institutions, local anu state goveinments, as well as healthcaie oiganizations can fully leveiage this
oppoitunity.
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The CEBC will act as a steeiing committee anu pioactively cieate a system which facilitates the
uevelopment of cannabis-baseu innovations fiom oui acauemic institutions anu businesses, a business
uevelopment platfoim to biing these innovations to maiket quickly, coupleu with a common sense
iegulatoiy enviionment, with input anu guiuance fiom the uepaitment of Bealth foi piouucts iequiiing
theii input.
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The foimation of Cannabis Economic Bevelopment Council will cieate a fiamewoik of innovation anu
business uevelopment in a mannei that complies with a sensible iegulatoiy fiamewoik anu mitigates
impacts to the health of oui society. To be successful, we neeu to iecognize the S uistinct maiket
segments anu uevelop subcommittees compiiseu of the appiopiiate stakeholueis.
The iecommenueu Sub Committees anu Stakeholueis aie as follows:
D+E- 7+6%4"3 !"##"$%& 9+4.+"*%2#"3 !"##"$%&
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Bep. of Agiicultuie, Bep.
0f Eneigy, FBA
Bep. 0f Bealth WSLCB & Bep. 0f
Bealth, FBA
0<&%#+&&
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Agiicultuie, Eneigy,
Textile,
Phaimaceutical, Biomeuical,
Bolistic Neuicines, Fieu
Butchinson Neuical Centei,
Amgen, etc.
Retail, Foou, Restauiant
& Night Club
/4"6+E%4 WS0 Agiicultuie 0W Neuicine None

Industrial Hemp Overview
Bemp is aiguably the laigest segment of the cannabis inuustiy anu will
uwaif both the meuical cannabis maiket anu the iecieational cannabis
maiket combineu. Inuustiial hemp is a stiong competitoi in maikets with
a total global annual piouuction %82%%,!&9 :;< =)!**!+& >&&7-**?.
Inuustiial Bemp has an extiemely low impact on the enviionment in pait
uue to its ability to be giown in many enviionments, high caibon
sequestiation, low feitilizei anu pesticiue iequiiements, anu the ability to
balance soils while iemoving toxins.
The veisatility of the plant combineu with the ease anu uensity of its giowth, low piouuctioninput costs,
natuial iesistance to pests, anu positions hemp as a stiong competitoi in the 2S,uuu piouucts in 1u
veitical submaikets of which this commouity cuiiently competes. Innovation will be a catalyst foi
explosive giowth in these maikets. In many cases, hemp is the absolute best choice fiom an economic
anu enviionmental peispective in these competing inuustiies.
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Some estimate the global maiket foi hemp consists of moie than 2S,uuu piouucts in 1u
Submaikets valueu at ovei $1u tiillion:
Agiicultuie - $2S7 Billion ImpoitExpoit
Textiles -$S78 Billion
Fuel - $6 Tiillion ulobal Naiket
Plastics - $796 Billion
Automotive - $29 Billion
Fuinituie - $86 Billion (0S anu China)
Foounutiitionbeveiages - $Suu Billion
Papei - $1.uS.6 Tiillion (Pulp + Caiuboaiu)
Constiuction Nateiials - $1.u1 Tiillion
Peisonal caie - $24S Billion
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Washington State is positioneu to become a woiluwiue leauei in hemp piouuction. The hemp ciop
pioviues communities of Eastein Washington the laigest oppoitunity as the aiea most pioven to be a
poweihouse of agiicultuial piouuction. Bemp as a piouuct will be the most competitive commouity
thioughout WA State uue to enumeiable applications anu maikets it can compete.
Foituitously, hemp is less susceptible to maiket fluctuations uue to its uiveisification of the inuustiies.
The abunuance of maikets, low piouuction cost, uuiability, anu few pests position the ciop to neeu few if
any goveinment subsiuies oi ciop insuiance to suppoit it, something no othei commouity can boast. Best
of all, uue to the lack of the psychoactive ingieuient TBC, eastein Washington can welcome hemp faiming
with open aims without compiomising theii value system, which aumitteuly has been somewhat to
iesistant to iecieational cannabis.
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WS0 is uniquely positioneu to be a woiluwiue leauei of ieseaich anu uevelopment foi cannabis
piouuction as well as be the acauemic thought leaueis foi the cannabis plant inuustiy. As a leauing
agiicultuial school in oui countiy, the acauemic anu facilities founuation foi cannabis ieseaich anu
uevelopment is alieauy in place. All is neeueu is the vision anu initiative iealize the tiemenuous acauemic
oppoitunity befoie us which has multi-geneiational implications into the schools futuie. Becoming an
eaily auoptei of cannabis ieseaich anu uevelopment will position the school to be a woilu-wiue leauei of
cannabis ieseaich, facts which aie stiongly beneficial to WS0 stuuents, faculty membeis, local businesses
which can leveiage anu biing these innovations to maiket, as well as oui state as a whole fiom a
buugetaiy anu employment peispective.
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Bemp has pioven to be an enviionmental asset on seveial fionts. Bemp is
caibon neutial anu can be useu to sequestei caibon, absoibing foui times
the amount of caibon as tiees. Bemp is ielatively easy to giow anu can be
giown without the use of salmon-killing heibiciues, pesticiues, anu
fungiciues. Bemp can also be useu as a "mop ciop" which can be useu to
iemove toxins fiom soils as well as ieuuce human anu animal waste fiom
enteiing oui wateis helping mitigate nitiogen-inuuceu "ueau zones"
which have uevastateu oui states' wateis anu thieateneu oui fishing
nemp ls cotboo oeottol
ooJ coo be oseJ to
sepoestet cotboo,
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inuustiies.
Bemp will lessen anu peihaps ieveise uefoiestation, which incieases the likelihoou of piopeity-
uestioying lanusliues that has cost oui state millions. Bemp is also an efficient anu affoiuable tool useu to
mitigate many of the enviionmental impacts causeu by the piouuction of othei commouities.
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The Bepaitment of Agiicultuie anu the Bepaitment of Eneigy aie the most appiopiiate goveinment
bouies to iegulate the hemp inuustiy. Bue to the lack of TBC in hemp, hemp lies well outsiue the scope
anu mission of the WA State Liquoi Contiol Boaiu (WSLCB). =$% -9%&2? 0!36*? !0 &+( 6+0!(!+&%,@ &+)
0$+7*, /% 9!5%& (-0A0 (+ ,%5%*+6 +) )%97*-(% -& !&,70()? 0+ "-) +7(0!,% ($% -9%&2!%0 2+)% 2+36%(%&2!%0B The
Bepaitments of Agiicultuie anu Euucation aie agencies both well suiteu to manage these issues, anu
possess the coie competencies neeueu to cieate anu auministei the appiopiiate iegulations foi the hemp
inuustiies.
Medical Cannabis Overview
Fiom an economic peispective, meuical cannabis is positioneu to ieceive
heavy investment fiom the biomeuical anu phaimaceutical inuustiies as
the iace to uevelop patentable intellectual piopeity ignites. An abunuance
of science shows the unique potential of the cannabis plant to piouuce
patentable ieseaich anu global ievenues easily neaiing a tiillion uollais
anu piofits into the hunuieus of millions. It shoulu be noteu, howevei, the
0S is cuiiently at a uistinct uisauvantage as China has fileu ovei 6,uuu
cannabis-ielateu patents. Washington State is uniquely positioneu to
become the home to the next Pfizei, Neick & Co. oi Amgen of cannabis. If leveiageu piopeily, oui state
will attiact hunuieus of meuical companies, tens of thousanus of high-paying phaimaceutical jobs, anu be
the home to scoies of "Captains of ulobal Inuustiies" foi uecaues to come.
Nuch of the focus aiounu meuical cannabis is taigeteu at Cannabinoius incluuing CBu, CBB, CBA, anu
teipenes, active agents othei than TBC. While TBC can be useu to tieat ceitain meuical conuitions, it is
not the piimaiy focus anu shoulu not be confuseu noi meigeu with the iecieational maiket. Scientific
ieseaich suppoits the efficacy of the unique CBB compounus founu within cannabis.
PubNeu, the leauing meuical publications uatabase, cites cannabis in ovei 17,uuu citations anu scoies of
peei-ievieweu meuical stuuies on oui own feueial goveinments' National Institute of Bealth website,
NIB.gov. The science behinu meuical cannabis shows these compounus help with the tieatment of cancei,
Biavet's synuiome, epilepsy, glaucoma, PTSB, nausea, anu othei uiseases anu conuitions plaguing oui
society.
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The iecieational cannabis maiket cannot seive oi suppoit the meuical cannabis maiket uue to lack of
economic incentive, a lack of suppoit by acauemic institutions, anu the lack of a suppoitive
phaimaceutical oi biomeuical inuustiy inteiesteu in ueveloping the iecieational cannabis inuustiy. The
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oolpoely posltlooeJ to
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!"##"$%& ()%*+ ,",+- F

iecieational cannabis maiket seives a maiket segment that is focuseu in laige pait on the levels of TBC.
Theie is little to no economic incentive foi gioweis in the iecieational maiket to uevelop stiains low in
TBC anu high in CBB. In auuition, theie aie no acauemic institutions that woulu be motivateu to uevelop
a ieseaich anu uevelopment piogiam baseu on TBC. The same holus tiue foi the phaimaceutical anuoi
biomeuical inuustiy.
When the WSLCB attempts to iaise piices anu limit peisonal piouuction, those who suffei aie ultimately
the patients, alieauy with a uispiopoitionate tax buiuen anu healthcaie costs. The fieeuom to choose
theii pathway to meuical ielief shoulu be alloweu anu ieseaicheu. Yet insuiance paiauigms anu legal
huiules foice some patients to go to a seveiely constiaineu, high-piiceu, anu psychoactive alteinative.
These patients aie uenieu the access to the meuical cannabis stiains they seek at a cost extiemely
piohibitive anu counteipiouuctive when consiueiing the amount many of these patients consume.
Foi the above ieasons, meuical cannabis must be tieateu anu iegulateu as a completely sepaiate inuustiy.
Not tieating this as a sepaiate inuustiy will huit meuical cannabis patients, seveiely hampei the piopei
uevelopment of an inuustiy that competes in a $SSu Billion 0S maiket, anu ueny Washingtonians high-
paying jobs, the uevelopment of global companies, anu uiminish laige tax ievenues that come with the
biith of a new inuustiy.
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The Neuical Cannabis Inuustiy shows gieat piomise in the tieatment of
cancei, neuiological uisoiueis, as well as moou uisoiueis. Bunuieus of
peei-ievieweu scholaily papeis suppoit these finuings as well as
thousanus of uocumenteu cases of the beneficial effects of cannabis when
fighting these uiseases.
Antiquateu feueial goveinment policies have cieateu a global iepiession
of Cannabis-baseu meuicines. 0nce these feueial policies aie iemoveu,
theie will be a iush by phaimaceutical anu biomeuical companies to
uevelop anu secuie intellectual piopeity anu patents. Washington State is positioneu to be the biggest
winnei as we have the one of the leauing meuical schools in the countiy, a stiong biomeuical inuustiy,
anu a leauing cancei ieseaich oiganization with tiemenuous talent establisheu within the state.
Phaimaceutical Inuustiy - $962 Billion ulobal Naiket anu to ieach $4uu Billion in 0S in S yeais
Cancei Tieatment - $12S Billion anu to ieach $1S8 Billion in 2u2u. (National Institute of Bealth)
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0niveisity of Washington is one of oui countiies best ieseaich anu uevelopment meuical schools anu is
positioneu to be at the foiefiont of meuical cannabis ieseaich. The school cuiiently piouuces some of the
best minus supplying oui thiiving cancei ieseaich institutions, biomeuical companies, anu hospitals with
some of the woilu's leauing talent. These facts position 0W Neuical as one of the leauing beneficiaiies of
the Neuical Cannabis Inuustiy. 0W Neuical stuuents anu faculty membeis will benefit gieatly fiom these
new piogiams anu new line of ieseaich. When feueial iegulations aie iemoveu, ieseaich giants in the
hunuieus of millions will likely floou the maiket anu 0niveisity of Washington is positioneu to benefit
gieatly fiom this.
AotlpooteJ feJetol
qovetomeot pollcles bove
cteoteJ o qlobol teptessloo
of coooobls-boseJ
meJlcloes.
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Neuical Cannabis Phaimaceutical Inuustiy anu Biomeuical Inuustiy shoulu be iegulateu by the
Bepaitment of Bealth, anu when Feueial uoveinment becomes coiiectly positioneu, the FBA. Bolistic
cannabis use as a uietaiy supplement shoulu not be iegulateu any uiffeient than othei foou.
Recreational Cannabis Overview
The Recieational Cannabis Naiket has alieauy pioven to be a winufall foi
Washington State anu has completely shatteieu the most conseivative of
estimates. Cuiiently 6,619 businesses have applieu foi applications to
giow iecieational cannabis. RANB Coipoiations has quintupleu theii
eaily estimates of the iecieational cannabis maikets fiom 4u metiic tons
to upwaius of 22S metiic tons foi Washington State alone. Bespite the
oveiwhelming eviuence, the WSLCB has chosen to limit the piouuction of
legal iecieational cannabis to 4u tons, leaving ciiminal enteipiises to fill
the gap. The WSLCB has taken fuithei action to step out of the iole they
weie taskeu with, anu go aftei the fleugling meuical cannabis maiket,
which will huit legitimate business owneis, anu fuithei help illegal black
maiket enteipiises. This appioach simply cieates anothei wai on uiugs,
peipetuating the black maiket anu likely foice a poition of the 6,619
legitimate businesses into the black maiket to compete uiiectly with veiy
expensive state iecieational cannabis maiket.
While we iecognize the Feueial uoveinment is conceineu about legitimate anu taxeu iecieational
cannabis going into othei states, this begs a question; who loses if this uoes happen. Eveiy giam of legal
anu taxeu iecieational cannabis ieplaces a giam piouuceu by illegal black maiket enteipiises.
Fuitheimoie, the only ueaths causeu by iecieational cannabis aie those attiibuteu to illegal activities anu
the Feueial uoveinments appioach is both unfounueu anu most impoitantly, ueauly. Recieational
Cannabis uioweis look foiwaiu to completely stomping out the black maiket, keeping oui stieets anu
chiluien safe, anu contiibuting to the oveiall well-being of oui state anu countiy.
W+* R.++ 7".8+* N+*+.E%#+ *)+ (%##+.&
The ovei-iegulation anu missteps by the WSLCB will cost oui states billions in lost tax ievenues, $2u8
million in lost commeicial ieal estate leases, anu hunuieus of millions to othei inuustiies incluuing
maiketing, packaging, tiauesmen, anu oui utilities. The WSLCB oveistep in authoiity also iisks seveiely
uisabling the Inuustiial Bemp anu Neuical Cannabis Inuustiy as these aie two inuustiies in which this
agency has no coie competencies to iegulate as they lie fai outsiue theii own inuustiy. Fiee maiket
capitalism will allow all these businesses a chance to compete anu will be a huge boost to oui state's
economy both in the shoit-teim anu long-teim.
L)2.*T*+.E 0+#+B%*& *2 R.++ 7".8+* /--.2"4)
The shoit-teim benefits to the fiee maiket capital appioach aie many. When looking at the numbeis
iemembei these aie the state maiket only anu foi iecieational cannabis only.
1be w5lc8 bos tokeo
fottbet octloo to step oot
of tbe tole tbey wete
toskeJ wltb, ooJ qo oftet
tbe fleJqlloq meJlcol
coooobls motket, wblcb
wlll bott leqltlmote
bosloess owoets, ooJ
fottbet belp llleqol block
motket eotetptlses.
!"##"$%& ()%*+ ,",+- <H

State licensing fees alone woulu geneiate $8,27S,7Su.uu million
(1)

S6,261 jobs woulu be cieateu
(2)

Bevelopment of full maiket estimate 22S metiic tons woulu cieate
$2.69 Billionyeai in ievenue
(S)

State woulu ieceive $1.18 Billionyeai in Cannabis tax ievenues.
(4)

State Sales Taxes woulu exceeu $17S.S Nillionyeai in tax ievenues
(S)

Local goveinments woulu ieceive $8u Nillionyeai in tax ievenues
(6)

Business anu 0ppoitunity Tax woulu be $8S Nillion
(7,8,9)

Commeicial ieal estate leases woulu be $2u8 Nillionyeai
(1u)

W2#HT*+.E 0+#+B%*& *2 R.++ 7".8+* !"-%*"3%&E /--.2"4)
When the feueial goveinment iepeals cannabis piohibition, Washington State will be positioneu to be a
Woilu Wiue leauei anu piouucei of Recieational Cannabis. Conseivative estimates of the woilu maiket
foi iecieational cannabis aie $4Su Billion. As a state we pioviue 7S% of the 0niteu State Bops maiket
Su% of the woilu's hops maiket, anu iecieational cannabis can be the same. We aie well positioneu to be
the global piouucei of iecieational cannabis, the economy will foievei be changeu by the influx of new
ievenue. With piopei planning, Washington State coulu easily piouuce a significant peicentage of the
global maiket anu (-A% !& /!**!+&0 3+)% !& (-8 )%5%&7%0.
Allowing the 6619 companies to compete, become stiongei, anu acquiie maiket shaie is key to secuiing
oui economic futuie. The fact of the mattei is Washington is a leauei among seveial othei states on the
veige of legalization; the question becomes whethei we will continue to stiangle the inuustiy anu lose
this oppoitunity, oi will we allow sensible iegulation, fiee maiket capitalism, anu leveiage the acauemic,
entiepieneuiship, anu infiastiuctuie which alieauy contiibutes to oui states success to flouiish.
This ieality will be one of the laigest economic booms in oui states histoiy.
X*)+. 7".8+*& *2 !2#&%6+.
!"##"$%& Y%H)* !3<$&S 0".&S !2BB++ L)2-&S "#6 9+&*"<."#*&
Recieational cannabis can be consumeu safely anu without negatively affecting otheis. Consumption
thiough euibles, oil-baseu pens, anu vapoiizing systems allows foi the consumption of cannabis without
piouucing smoking-ielateu paiticulates. In auuition, cannabis can be useu as a flavoiing agent anu its
leaves can be juiceu to piouuce vitamin-iich uiinks.
Allowing cannabis to be consumeu in these aieas will meet maiket uemanu anu suppoit anu entiie new
sectoi in the iestauiant anu nightclub inuustiy. The WSLCB is well positioneu to be able to iegulate this
inuustiy anu theie aie no viable ieasons why cannabis shoulu be tieateu any uiffeient than alcohol.
This new segment of the foou anu enteitainment will be a huge asset to Washington State's thiiving foou
scene. As a state we cuiiently piouuce some of the best seafoou, locally souiceu anu oiganic piouuce anu
meats, some of the best wines, ciaft beeis, anu spiiits, anu have woilu-class chefs to highlight the bounty
of oui state. Cannabis is just anothei ingieuient to oui states pallet. Theie have alieauy been seveial
chefs inteiesteu in piouucing cannabis-paiieu uinneis anu iestauiant concepts. Allowing the culinaiy
coosetvotlve estlmotes of
tbe wotlJ motket fot
tecteotloool coooobls ote
5450 8lllloo.
!"##"$%& ()%*+ ,",+- <<

innovatois to piouuce these cieations will make Washington as woiluwiue foou uestination anu one of
the only places to expeiience cannabis cuisine.
!"##"$%& A2<.%&E
Touiism is the woilu's laigest inuustiy anu cannabis touiism has alieauy
pioven to be huge business foi Coloiauo. Washington State is positioneu
to be the leauei in cannabis touiism anu coulu uiive hunuieus of millions
of uollais to oui state's hotels, iestauiant, gift shops, anu touiist sites.
Cannabis touis, cannabis uinnei ciuises, anu iestauiants pioviuing
cannabis uinneis offei a unique expeiience wheie only 2 othei places in
the woilu can offei.
The economic impact fiom cannabis touiism anu the jobs it cieates is
solely uepenuent on how we hanule this oppoitunity. While we aie
positioneu to succeeu, we can easily squanuei this oppoitunity thiough
iegulatoiy missteps anu political miscalculations.
9+4.+"*%2#"3 !"##"$%& L)2<36 $+ 9+H<3"*+6 $5 *)+ (LW!0S
N+-".*E+#* 2B 9+O+#<+S "#6 N+-".*E+#* 2B W%4+#&%#H
Bue to the piesence of TBC in iecieational cannabis, we feel the WSLCB is
positioneu to iegulate this segment of the Cannabis inuustiy. Bowevei,
we ieject the pioven faileu appioach the WSLCB has taken. Washington
voteis hau alieauy stiippeu the WSLCB of its powei to be the sole souice of alcohol in laige pait uue to
the agency's inability to iun the liquoi inuustiy efficiently oi piospeiously. Since stiipping the liquoi
boaiu of its powei, Washington State has seen the uevelopment of hunuieus of new businesses anu
thousanus of jobs. We feel cannabis shoulu not be tieateu any uiffeiently than beei, wine oi spiiits anu
can be iesponsibly giown, piocesseu, anu solu much in the same way of alcohol oi coffee.

The Future and Next Steps for WA State
N+O+32- !"##"$%& M42#2E%4 N+O+32-E+#* !2<#4%3
As stateu eailiei, the uevelopment of the Cannabis Economic Bevelopment Council will lay the
giounuwoik to piopeily iegulate anu giow the cannabis inuustiy insuiing all stakeholueis a voice in the
uevelopment of this piospeious inuustiy. Tieating the inuustiy to a one-size fits all mentality anu having
the WSLCB be in chaige of ueveloping this inuustiy puts an unfaii buiuen on the agency itself anu
squanueis the oppoitunity Washington votei have hanueu us.
The foimation of the CEBC will not only ensuie we uevelop these inuustiies piopeily, but it will insuie
the full iealization of piospeiity which inuustiial hemp, meuical cannabis anu iecieational cannabis
pioviue.
.1be poestloo becomes
wbetbet we wlll cootlooe
to sttooqle tbe loJostty
ooJ lose tbls oppottoolty,
ot wlll we ollow seoslble
teqolotloo, ftee motket
copltollsm, ooJ levetoqe
tbe ocoJemlc,
eottepteoeotsblp, ooJ
loftosttoctote wblcb
olteoJy coottlbotes to oot
stotes soccess to flootlsb.
!"##"$%& ()%*+ ,",+- <.

N+O+32- ,"*)G"5 *2 W+H%*%E"45
Piohibition has causeu the uevelopment of a black maiket that has thiiveu uevoiu of iegulation anu
sounu business piactices while cieating an enviionment of ciime. Beveloping a pathway to legitimacy
anu pioviuing business counseling, legal counseling anu iegulatoiy guiuance will help facilitate the enu of
the black maiket anu tuin the inuiviuuals into legitimate business owneis.
We believe the Pathway to Legitimacy pioviues a win-win scenaiio to all stakeholueis anu is the piopei
way of hanuling the challenges facing closing the black maiket while ieuucing cost to the goveinment.
Pioviuing the inuiviuuals with the business skill set, a cleai pathway to legitimate business uevelopment,
anu the legal anu iegulatoiy auvice is a mouel in which othei states in the futuie can follow.
C#4.+"&+ ,.26<4*%2# "#6 A"Z 9+B2.E
WSLCB has set the piouuction cap to 2S% of theii oiiginal estimate of 4u
metiic tons oi S - 8% of the estimateu maiket. It shoulu be pointeu out
the state's own consultants iecently ieviseu theii estimates up by 6uu% to
22S Netiic tons. Coloiauo is alieauy pieuicting they will iun out of
iecieational cannabis. This appioach leaves the black maiket to make up
the 92 - 97%. This is a giave mistake that will cost lives as the agency
leaves the piouuction to uiug gangs anu ciiminal enteipiises.
The agency fiist goal shoulu be to wipe out the black maiket. This can be
uone thiough incieaseu piouuction anu less buiuensome tax stiuctuie.
The agencies cuiient appioach will skyiocket iecieational cannabis maiket to 2 - S times the piices of
the black maiket. We have seen this alieauy happening in Coloiauo wheie piices have uoubleu to cost of
black maiket piices anu they only have a 2S% tax anu not the 7S% we have in Washington State. The
only winneis in this scenaiio aie uiug gangs anu ciiminal enteipiises.
We believe by incieasing the piouuction to the full 1uu% of the estimateu value anu uecieasing the taxes
to 2S% will kill the black maiket anu give Washington State moie tax ievenue anu less ciiminal costs anu
cieate a win-win scenaiio foi all stakeholueis. 0ntil then, the black maiket will thiive, legitimate
iecieational cannabis businesses will peiish, anu the entiie inuustiy as a whole is in jeopaiuy of collapse.
!2#43<&%2#: (/ L*"*+S *)+ W+"6+. %# !"##"$%& C##2O"*%2#
WA State is on the cusp of an incieuible economic success stoiy. Sauly,
WA State anu the WSLCB coulu stanu in the way, piouucing piopaganua-
fueleu legislation, managing with illogical oveisight, anu halting the piofit
potential of this incieuible oppoitunity.
As electeu leaueis mull the issues, one shoulu ask oneself:
Boes Washington State Bighways anu Infiastiuctuie ueseive
iepaii. C1DE
Bo the chiluien of Washington State ueseive secuie anu cutting-
euge schools. C1DE
1be oqeocy fltst qool
sboolJ be to wlpe oot tbe
block motket. 1bls coo be
Jooe tbtooqb locteoseJ
ptoJoctloo ooJ less
botJeosome tox sttoctote.
uo we bove eoooqb mooey
lo tbe 5tote 1teosoty to
fooJ oo eoJowmeot fot
fotote qeoetotloos, llke tbe
wllJly soccessfol Alosko
letmooeot looJ?
1be ooswet ls 5, lf we
cboose coooobls ltoqtess.
!"##"$%& ()%*+ ,",+- <4

Bo we have enough money in the State Tieasuiy to funu an enuowment foi futuie geneiations,
like the wiluly successful Alaska Peimanent Funu.
TBE ANSWER IS
YES, IF WE CB00SE CANNABIS PR0uRESS.
That potential is what will uefine WA State foi centuiies to come. The enviionmental solutions possible
fiom pioneeiing inuustiial hemp innovation shoulu be impetus alone foi oui legislatois to act now on its
momentum within this fiee maiketplace.
We must expanu oui cuiient concepts of baiiieis, anu insteau imagine the potential foi how fai this new
state inuustiy can tiuly help WA State safely piospei foi centuiies to come. WA State is anu shoulu ietain
its iightful title as the 0.S. #1 Leauei in Cannabis Innovation.
/&&<E-*%2#&
1. State Application Fee of $2Su X 6619 applicants. State License Fee of $1uuu X 6619 applicants = $8,27S,7Su.uu
2. Coffee has an iuentical giowei, piouuce, anu ietailei mouel as cannabis. Staibucks Coffee aveiages 8.S employees foi eveiy stoie.
Baseu on the 8.S employee aveiage multiplieu by the 6619 stoies = S6261 employees foi the Recieational Cannabis Naiket.
S. RANB Coipoiation estimateu the iecieational cannabis maiket to be up to 22S Netiic Tons. Washington State cieateu a taigeteu ietail
giam cost of $12giam. 22S million giams X $12 = $2.7 Billion.
4. 22S Netiic tons X .2S X (Washington State assumes $S.uugiam piouucei, $6giam foi piocessoi, anu $12giam foi ietail) Piouucei
tax geneiation = $168 Nillion. Piocessoi tax ueneiation = $SS7.S Nillion. Retailei Tax = $67S Nillion. Total = $1.18 Billion in
Cannabis Tax.
S. $2.7 Billion X .u6S (States Sales Tax Rate) = $17S.S Nillion in State Taxes
6. $2.7 Billion X .uS (Assumeu Sales Local Tax iate) - $81 Nillion in Local Sales Taxes
7. B0 Tax foi Retaileis $2.7 Billion X .u18 = $48.6 million
8. B0 Tax foi Piocessois $1.SS Billion X .u18 = $24.S million
9. B0 Tax foi uiowei $67S Nillion X .u18 = $12.1S million
1u. Commeicial leases foi gioweis: 11.2S million sqft. to giow 22S metiic tons. Cuiient inuustiial lease aveiages $6.2Ssqft. =$7u.S
Nillion in inuustiial leases.
11. Commeicial leases foi piocessois: 1918 piocessoi applicants aveiaging Suuu sqft. of leaseu space at $11.7Ssqft. = $67.6 Nillion in
Commeicial leases.
12. Commeicial leases foi ietaileis: 2uSS ietail applicants aveiaging 2uuu sqft. of leaseu space at $17.2Ssqft. = $7u.2 million in
Commeicial leases.
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