SEATTLE, July 6 (Reuters) - His glass pipes are on display and final regulatory hurdles nearly cleared, but the biggest concern for Cannabis City owner James Lathrop as he opens his Seattle pot shop this week is the possibility of running out of mind-altering bud in a matter of hours.
"What do you do when your shelves are empty? Do I just send everybody home? Do we try and stay open? I can't pay people if we aren't selling anything," said Lathrop, who expects to become one of Washington state's first legal marijuana retailers this week as the state issues licenses.
The state is poised on Monday to become the second after Colorado to allow retail sales of recreational marijuana to adults, under a heavily regulated and taxed system that voters approved in November 2012. Stores could begin operations as early as Tuesday, with up to 20 expected to open statewide.
While Colorado, where regulated retail sales rolled out fairly smoothly in January, is collecting millions of dollars per month in tax revenues, Washington has charted a glacial and more halting path to market.
Pot regulators, business owners and analysts say pot could sell out in Washington within hours or days at the few shops slated to open on Tuesday. That is largely because of limited harvests by licensed growers and processors, or because they failed to clear regulatory hurdles to get their product to market.
Washington is also grappling with a backlog of hundreds of would-be growers who still need to be screened by overwhelmed investigators with the state Liquor Control Board, agency spokesman Brian Smith said.
The board has so far licensed fewer than 80 growers statewide, out of more than 2,600 applicants. And only a fraction of their pot -- roughly 560,000 square feet is in production, or about 10 football fields' worth -- has gone through required lab-testing. Many harvests won't be ready by early July.
"There is a gold rush mentality. Many didn't read what it would require to get a license. ... We didn't expect 7,000 applicants," Smith said of the number of interested growers, processors and retailers.
Cannabis City's Lathrop could find only one grower ready to ship on July 8, opening day, and plans to suggest customers stick to a 2-gram limit to stretch his supply.
Shoppers looking to get high on Tuesday could see a gram selling at $15-$30, said Dominic Corva, executive director of Seattle's Center for the Study of Cannabis and Social Policy.
Novelty-seekers and tourists might pay $25 or $30 per gram - roughly twice the current price at weakly regulated medical dispensaries. At those prices, heavy users will stick with neighborhood dispensaries or drug dealers, Corva said.
Even as legal retail operations roll out, dozens of cities have enacted pot moratoriums or outright bans. Also, no stores will carry popular "edibles," such as pot-infused brownies, because no processor has been cleared to operate a cannabis kitchen.
Investors and regulators remain hopeful the market will ramp up in the coming months as more growers, processors and retailers come on line.
But at least one grower expects it will take much longer.
"It'll be at least three to five years before we meet the demand," said Bob Leeds, co-owner of Seattle-based Sea of Green Farms, which got its license to grow and process pot in March.
On a recent afternoon, Leeds' employees were huddled around a table packing palm-sized baggies with pot strains like Dutch Hawaiian, Space Needle and Double Purple Doja. They were inching toward the 36,000 bags as well as hemp-paper cigarillos they will ship to stores statewide.
Leeds said he charges stores about $3,000 to $4,500 per pound, or $7 to $10 per gram before local, state and excise taxes, and any retail mark-up. He predicts stores will sell out within hours of opening on Tuesday.
"There won't be any more until weeks from now," he said. "We'll have our second crop in July." (Editing by Cynthia Johnston and Leslie Adler)
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.