BILL REQ. #:  H-1920.1 

Read first time 03/07/13.   Referred to Committee on Government Accountability & Oversight.

     AN ACT Relating to encouraging the liquor control board to implement rules to promote the development of marijuana production facilities located on unenclosed, outdoor agricultural land in rural areas; and amending RCW 69.50.325 and 69.50.345.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 69.50.325 and 2013 c 3 s 4 (Initiative Measure No. 502) are each amended to read as follows:
     (1)(a) There shall be a marijuana producer's license to produce marijuana for sale at wholesale to marijuana processors and other marijuana producers, regulated by the state liquor control board and subject to annual renewal. The production, possession, delivery, distribution, and sale of marijuana in accordance with the provisions of chapter 3, Laws of 2013 and the rules adopted to implement and enforce it, by a validly licensed marijuana producer, shall not be a criminal or civil offense under Washington state law. Every marijuana producer's license shall be issued in the name of the applicant, shall specify the location at which the marijuana producer intends to operate, which must be within the state of Washington, and the holder thereof shall not allow any other person to use the license. The application fee for a marijuana producer's license shall be two hundred fifty dollars. The annual fee for issuance and renewal of a marijuana producer's license shall be one thousand dollars. A separate license shall be required for each location at which a marijuana producer intends to produce marijuana.
     (b) In adopting rules regulating the licensing of marijuana producers, the state liquor control board is encouraged to structure its regulatory scheme so as to give strong preference to the licensing of those proposed or existing marijuana production operations located in rural areas on unenclosed, outdoor agricultural lands, as opposed to indoor growing operations such as greenhouses, warehouses, or other constructed, industrial style growing facilities. The implementation of a regulatory scheme that promotes the development of marijuana production operations located on unenclosed, outdoor agricultural lands will yield environmental, social, and economic benefits, including greatly reduced energy consumption, the reduction of adverse environmental impacts likely to result from indoor, industrial style growing operations, and the creation of new and promising economic opportunities for small farmers in this state.
     (c) In order to provide an incentive for the production of marijuana in rural areas on unenclosed, outdoor agricultural lands, as set forth in (b) of this subsection, the state liquor control board is encouraged to adopt rules authorizing the inclusion of labeling on retail packaging certifying that the marijuana was produced on such outdoor agricultural lands. The state liquor control board is authorized to issue the rules necessary for such certification, as well as the design and textual content of the certification labeling.
     (2) There shall be a marijuana processor's license to process, package, and label useable marijuana and marijuana-infused products for sale at wholesale to marijuana retailers, regulated by the state liquor control board and subject to annual renewal. The processing, packaging, possession, delivery, distribution, and sale of marijuana, useable marijuana, and marijuana-infused products in accordance with the provisions of chapter 3, Laws of 2013 and the rules adopted to implement and enforce it, by a validly licensed marijuana processor, shall not be a criminal or civil offense under Washington state law. Every marijuana processor's license shall be issued in the name of the applicant, shall specify the location at which the licensee intends to operate, which must be within the state of Washington, and the holder thereof shall not allow any other person to use the license. The application fee for a marijuana processor's license shall be two hundred fifty dollars. The annual fee for issuance and renewal of a marijuana processor's license shall be one thousand dollars. A separate license shall be required for each location at which a marijuana processor intends to process marijuana.
     (3) There shall be a marijuana retailer's license to sell useable marijuana and marijuana-infused products at retail in retail outlets, regulated by the state liquor control board and subject to annual renewal. The possession, delivery, distribution, and sale of useable marijuana and marijuana-infused products in accordance with the provisions of chapter 3, Laws of 2013 and the rules adopted to implement and enforce it, by a validly licensed marijuana retailer, shall not be a criminal or civil offense under Washington state law. Every marijuana retailer's license shall be issued in the name of the applicant, shall specify the location of the retail outlet the licensee intends to operate, which must be within the state of Washington, and the holder thereof shall not allow any other person to use the license. The application fee for a marijuana retailer's license shall be two hundred fifty dollars. The annual fee for issuance and renewal of a marijuana retailer's license shall be one thousand dollars. A separate license shall be required for each location at which a marijuana retailer intends to sell useable marijuana and marijuana-infused products.

Sec. 2   RCW 69.50.345 and 2013 c 3 s 10 (Initiative Measure No. 502) are each amended to read as follows:
     The state liquor control board, subject to the provisions of chapter 3, Laws of 2013, must adopt rules by December 1, 2013, that establish the procedures and criteria necessary to implement the following:
     (1) Licensing of marijuana producers, marijuana processors, and marijuana retailers, including prescribing forms and establishing application, reinstatement, and renewal fees;
     (2) Creating a regulatory scheme for marijuana producers that gives strong preference to the licensing of those proposed or existing marijuana production operations located in rural areas on unenclosed, outdoor agricultural lands, as required under RCW 69.50.325(1)(b);
     (3) Determining, in consultation with the office of financial management, the maximum number of retail outlets that may be licensed in each county, taking into consideration:
     (a) Population distribution;
     (b) Security and safety issues; and
     (c) The provision of adequate access to licensed sources of useable marijuana and marijuana-infused products to discourage purchases from the illegal market;
     (((3))) (4) Determining the maximum quantity of marijuana a marijuana producer may have on the premises of a licensed location at any time without violating Washington state law;
     (((4))) (5) Determining the maximum quantities of marijuana, useable marijuana, and marijuana-infused products a marijuana processor may have on the premises of a licensed location at any time without violating Washington state law;
     (((5))) (6) Determining the maximum quantities of useable marijuana and marijuana-infused products a marijuana retailer may have on the premises of a retail outlet at any time without violating Washington state law;
     (((6))) (7) In making the determinations required by subsections (((3))) (4) through (((5))) (6) of this section, the state liquor control board shall take into consideration:
     (a) Security and safety issues;
     (b) The provision of adequate access to licensed sources of marijuana, useable marijuana, and marijuana-infused products to discourage purchases from the illegal market; and
     (c) Economies of scale, and their impact on licensees' ability to both comply with regulatory requirements and undercut illegal market prices;
     (((7))) (8) Determining the nature, form, and capacity of all containers to be used by licensees to contain marijuana, useable marijuana, and marijuana-infused products, and their labeling requirements, to include but not be limited to:
     (a) The business or trade name and Washington state unified business identifier number of the licensees that grew, processed, and sold the marijuana, useable marijuana, or marijuana-infused product;
     (b) Lot numbers of the marijuana, useable marijuana, or marijuana-infused product;
     (c) THC concentration of the marijuana, useable marijuana, or marijuana-infused product;
     (d) Medically and scientifically accurate information about the health and safety risks posed by marijuana use; and
     (e) Language required by RCW 69.04.480;
     (((8))) (9) In consultation with the department of agriculture, establishing classes of marijuana, useable marijuana, and marijuana-infused products according to grade, condition, cannabinoid profile, THC concentration, or other qualitative measurements deemed appropriate by the state liquor control board;
     (((9))) (10) Establishing reasonable time, place, and manner restrictions and requirements regarding advertising of marijuana, useable marijuana, and marijuana-infused products that are not inconsistent with the provisions of chapter 3, Laws of 2013, taking into consideration:
     (a) Federal laws relating to marijuana that are applicable within Washington state;
     (b) Minimizing exposure of people under twenty-one years of age to the advertising; and
     (c) The inclusion of medically and scientifically accurate information about the health and safety risks posed by marijuana use in the advertising;
     (((10))) (11) Specifying and regulating the time and periods when, and the manner, methods, and means by which, licensees shall transport and deliver marijuana, useable marijuana, and marijuana-infused products within the state;
     (((11))) (12) In consultation with the department and the department of agriculture, establishing accreditation requirements for testing laboratories used by licensees to demonstrate compliance with standards adopted by the state liquor control board, and prescribing methods of producing, processing, and packaging marijuana, useable marijuana, and marijuana-infused products; conditions of sanitation; and standards of ingredients, quality, and identity of marijuana, useable marijuana, and marijuana-infused products produced, processed, packaged, or sold by licensees;
     (((12))) (13) Specifying procedures for identifying, seizing, confiscating, destroying, and donating to law enforcement for training purposes all marijuana, useable marijuana, and marijuana-infused products produced, processed, packaged, labeled, or offered for sale in this state that do not conform in all respects to the standards prescribed by chapter 3, Laws of 2013 or the rules of the state liquor control board.