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Washington state celebrates as new marijuana law hits the books

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Even before the party quiets down, the state has begun a yearlong process to set rules for the first-of-its-kind, regulated, for-profit recreational-marijuana market.

The Liquor Control Board is taking public comments until Feb. 10 about the rules and restrictions needed for a marijuana-grower license. Similar rule-making is planned for marijuana processor and retailer licenses.

Despite uncertainty about federal intervention, investors and businessmen are swarming.

The state estimates Washington’s market alone at $1 billion a year, with 363,000 customers consuming 187,000 pounds of marijuana, all of which must be grown in the state. Steep sin taxes are projected to raise $560 million a year.

Jamen Shively, a former Microsoft corporate strategy manager, rang in legalization at his Bellevue mansion with the launch of his new gourmet-marijuana retail brand, Diego Pellicer.

He envisions boutique shops dispensing “small quantities to responsible adults,” but said he won’t start until he’s convinced the plan is “sufficiently legal,” and won’t make him a target for federal agents.

“This is the first moment in U.S. history—and maybe the world’s history—when we know a $50 (billion) to $100 billion market is going to materialize overnight, for which there does not exist a single brand,” said Shively. He predicted a “river of money” from investors.

Kevin Oliver, executive director of the Washington chapter of NORML, said his group is researching whether it could open a members-only lounge he called “an Elks Club of cannabis.”

Doing so may conflict with the state indoor-smoking ban, which protects employees from secondhand smoke.

James Apa, spokesman for Public Health—Seattle & King County, said staff were still examining the new law. “We’re taking a really close look, but I’m not at a point where we’ve made a determination on that.”

At midday Thursday, pungent marijuana smoke wafted through Seattle’s high-tech hub in South Lake Union, from no apparent source.

We’ll likely need to get used to it. A study of the potential impact of marijuana legalization in California in 2010 predicted use could double, bringing it up to the all-time-high consumption rates of the 1970s.

About $44 million of the new marijuana sin taxes in Washington’s law are earmarked for marijuana education and intervention programs. But that money won’t come until state-licensed marijuana stores open next December, or later.

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