By Senator Kohl-Welles

NOT ADOPTED 2/13/2015

Strike everything after the enacting clause and insert the following:

NEW SECTION.  "Sec. 1.  This act may be known and cited as the comprehensive marijuana reform act.

Part I - Intent

However, the road from 1998 to 2012 has not been entirely smooth. In 2011, a comprehensive regulatory scheme relating to the medical use of marijuana was passed by both houses of the legislature but was partially vetoed by the governor who voiced concerns about federal intervention. Unfortunately, the partial veto did not add clarity to the medical marijuana system and is responsible for some of the confusion relating to it that exists to this day. The 2011 bill, chapter 181, Laws of 2011 (Engrossed Second Substitute Senate Bill No. 5073), provided for licensed producers, processors, and distributors of marijuana. It also provided for small patient collective gardens to allow for their own personal, medical use. These collective gardens were intended by the legislature to supplement the licensed producers; they were never intended to become storefront businesses, operating without regulatory oversight. Yet, today, collective gardens have developed into dispensaries, selling marijuana for the medical use of patients, without testing or safe handling standards and without regulatory oversight.

The resulting landscape is untenable. The state has two contradictory methods of addressing marijuana: A medical system without regulation and a recreational system subject to strict regulation, including agency oversight, seed to sale tracking, product testing and labeling, and strict controls relating to underage use. Law enforcement does not have bright lines to follow in determining who are recreational users and who are medical users. Consequently, medical dispensaries are operating, many of which are selling untested products to medical users and without any assurances that people who truly need medical products are accessing those products or that the products they purchase are free from contaminants and have the THC/CBD level that would benefit their medical conditions. The legislature intends to draw bright line rules to aid enforcement of both medical and recreational systems, to merge medical into the recreational regulatory scheme so all products sold in the state meet at least the same testing and product safety requirements, and to ensure that people who require marijuana for their medical care are still provided adequate access to this product.

The legislature further finds that, while Initiative Measure No. 502 began the discussion for this state in regulating the recreational use of marijuana, there is much work that needs to be done. This includes: Developing safe delivery methods for marijuana, becoming a leader in the country in research related to the use of marijuana, permitting all people regardless of whether they are medical or recreational users to grow up to six plants for their personal use, permitting all people to purchase products low in THC and high in CBD without paying sales and use tax, permitting qualifying patients and designated providers to purchase medical grade marijuana without paying sales and use tax, addressing local government regulation by requiring that all moratoria and bans on marijuana be subject to public vote, and limiting access to marijuana by minors. Further qualifying patients need assurances that they will continue to have access to marijuana for their personal, medical use. The legislature intends to adopt a medical marijuana waiver system that allows patients to directly apply with the department of health to get a waiver from the limits provided by this bill in order to address their unique medical needs. This system eliminates the need for a medical marijuana registry that involves the health care professional as the "gatekeeper" to entry and will eliminate abuse of authorizations.

Part II - Definitions

Sec. 201.  RCW 69.50.101 and 2014 c 192 s 1 are each amended to read as follows:

Unless the context clearly requires otherwise, definitions of terms shall be as indicated where used in this chapter:

(a) "Administer" means to apply a controlled substance, whether by injection, inhalation, ingestion, or any other means, directly to the body of a patient or research subject by:

(1) a practitioner authorized to prescribe (or, by the practitioner's authorized agent); or

(2) the patient or research subject at the direction and in the presence of the practitioner.

(b) "Agent" means an authorized person who acts on behalf of or at the direction of a manufacturer, distributor, or dispenser. It does not include a common or contract carrier, public warehouseperson, or employee of the carrier or warehouseperson.

(c) "Commission" means the pharmacy quality assurance commission.

(d) "Controlled substance" means a drug, substance, or immediate precursor included in Schedules I through V as set forth in federal or state laws, or federal or commission rules.

(e)(1) "Controlled substance analog" means a substance the chemical structure of which is substantially similar to the chemical structure of a controlled substance in Schedule I or II and:

(i) that has a stimulant, depressant, or hallucinogenic effect on the central nervous system substantially similar to the stimulant, depressant, or hallucinogenic effect on the central nervous system of a controlled substance included in Schedule I or II; or

(ii) with respect to a particular individual, that the individual represents or intends to have a stimulant, depressant, or hallucinogenic effect on the central nervous system substantially similar to the stimulant, depressant, or hallucinogenic effect on the central nervous system of a controlled substance included in Schedule I or II.

(2) The term does not include:

(i) a controlled substance;

(ii) a substance for which there is an approved new drug application;

(iii) a substance with respect to which an exemption is in effect for investigational use by a particular person under Section 505 of the federal Food, Drug and Cosmetic Act, 21 U.S.C. Sec. 355, to the extent conduct with respect to the substance is pursuant to the exemption; or

(iv) any substance to the extent not intended for human consumption before an exemption takes effect with respect to the substance.

(f) "Deliver" or "delivery," means the actual or constructive transfer from one person to another of a substance, whether or not there is an agency relationship.

(g) "Department" means the department of health.

(h) "Dispense" means the interpretation of a prescription or order for a controlled substance and, pursuant to that prescription or order, the proper selection, measuring, compounding, labeling, or packaging necessary to prepare that prescription or order for delivery.

(i) "Dispenser" means a practitioner who dispenses.

(j) "Distribute" means to deliver other than by administering or dispensing a controlled substance.

(k) "Distributor" means a person who distributes.

(l) "Drug" means (1) a controlled substance recognized as a drug in the official United States pharmacopoeia/national formulary or the official homeopathic pharmacopoeia of the United States, or any supplement to them; (2) controlled substances intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in individuals or animals; (3) controlled substances (other than food) intended to affect the structure or any function of the body of individuals or animals; and (4) controlled substances intended for use as a component of any article specified in (1), (2), or (3) of this subsection. The term does not include devices or their components, parts, or accessories.

(m) "Drug enforcement administration" means the drug enforcement administration in the United States Department of Justice, or its successor agency.

(n) "Electronic communication of prescription information" means the transmission of a prescription or refill authorization for a drug of a practitioner using computer systems. The term does not include a prescription or refill authorization verbally transmitted by telephone nor a facsimile manually signed by the practitioner.

(o) "Immediate precursor" means a substance:

(1) that the commission has found to be and by rule designates as being the principal compound commonly used, or produced primarily for use, in the manufacture of a controlled substance;

(2) that is an immediate chemical intermediary used or likely to be used in the manufacture of a controlled substance; and

(3) the control of which is necessary to prevent, curtail, or limit the manufacture of the controlled substance.

(p) "Isomer" means an optical isomer, but in subsection (z)(5) of this section, RCW 69.50.204(a) (12) and (34), and 69.50.206(b)(4), the term includes any geometrical isomer; in RCW 69.50.204(a) (8) and (42), and 69.50.210(c) the term includes any positional isomer; and in RCW 69.50.204(a)(35), 69.50.204(c), and 69.50.208(a) the term includes any positional or geometric isomer.

(q) "Lot" means a definite quantity of marijuana, marijuana concentrates, useable marijuana, or marijuana-infused product identified by a lot number, every portion or package of which is uniform within recognized tolerances for the factors that appear in the labeling.

(r) "Lot number" shall identify the licensee by business or trade name and Washington state unified business identifier number, and the date of harvest or processing for each lot of marijuana, marijuana concentrates, useable marijuana, or marijuana-infused product.

(s) "Manufacture" means the production, preparation, propagation, compounding, conversion, or processing of a controlled substance, either directly or indirectly or by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container. The term does not include the preparation, compounding, packaging, repackaging, labeling, or relabeling of a controlled substance:

(1) by a practitioner as an incident to the practitioner's administering or dispensing of a controlled substance in the course of the practitioner's professional practice; or

(2) by a practitioner, or by the practitioner's authorized agent under the practitioner's supervision, for the purpose of, or as an incident to, research, teaching, or chemical analysis and not for sale.

(t) "Marijuana" or "marihuana" means all parts of the plant Cannabis, whether growing or not, with a THC concentration greater than 0.3 percent on a dry weight basis; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. The term does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.

(u) "Marijuana concentrates" means products consisting wholly or in part of the resin extracted from any part of the plant Cannabis and having a THC concentration greater than sixty percent.

(v) "Marijuana processor" means a person licensed by the state liquor ((control)) and cannabis board to process marijuana into marijuana concentrates, useable marijuana, and marijuana-infused products, package and label marijuana concentrates, useable marijuana, and marijuana-infused products for sale in retail outlets, and sell marijuana concentrates, useable marijuana, and marijuana-infused products at wholesale to marijuana retailers.

(w) "Marijuana producer" means a person licensed by the state liquor ((control)) and cannabis board to produce and sell marijuana at wholesale to marijuana processors and other marijuana producers.

(x) "Marijuana-infused products" means products that contain marijuana or marijuana extracts, are intended for human use, and have a THC concentration greater than 0.3 percent and no greater than sixty percent. The term "marijuana-infused products" does not include either useable marijuana or marijuana concentrates.

(y) "Marijuana retailer" means a person licensed by the state liquor ((control)) and cannabis board to sell marijuana concentrates, useable marijuana, and marijuana-infused products in a retail outlet.

(z) "Narcotic drug" means any of the following, whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis:

(1) Opium, opium derivative, and any derivative of opium or opium derivative, including their salts, isomers, and salts of isomers, whenever the existence of the salts, isomers, and salts of isomers is possible within the specific chemical designation. The term does not include the isoquinoline alkaloids of opium.

(2) Synthetic opiate and any derivative of synthetic opiate, including their isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, whenever the existence of the isomers, esters, ethers, and salts is possible within the specific chemical designation.

(3) Poppy straw and concentrate of poppy straw.

(4) Coca leaves, except coca leaves and extracts of coca leaves from which cocaine, ecgonine, and derivatives or ecgonine or their salts have been removed.

(5) Cocaine, or any salt, isomer, or salt of isomer thereof.

(6) Cocaine base.

(7) Ecgonine, or any derivative, salt, isomer, or salt of isomer thereof.

(8) Any compound, mixture, or preparation containing any quantity of any substance referred to in subparagraphs (1) through (7).

(aa) "Opiate" means any substance having an addiction-forming or addiction-sustaining liability similar to morphine or being capable of conversion into a drug having addiction-forming or addiction-sustaining liability. The term includes opium, substances derived from opium (opium derivatives), and synthetic opiates. The term does not include, unless specifically designated as controlled under RCW 69.50.201, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and its salts (dextromethorphan). The term includes the racemic and levorotatory forms of dextromethorphan.

(bb) "Opium poppy" means the plant of the species Papaver somniferum L., except its seeds.

(cc) "Person" means individual, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

(dd) "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing.

(ee) "Practitioner" means:

(1) A physician under chapter 18.71 RCW; a physician assistant under chapter 18.71A RCW; an osteopathic physician and surgeon under chapter 18.57 RCW; an osteopathic physician assistant under chapter 18.57A RCW who is licensed under RCW 18.57A.020 subject to any limitations in RCW 18.57A.040; an optometrist licensed under chapter 18.53 RCW who is certified by the optometry board under RCW 18.53.010 subject to any limitations in RCW 18.53.010; a dentist under chapter 18.32 RCW; a podiatric physician and surgeon under chapter 18.22 RCW; a veterinarian under chapter 18.92 RCW; a registered nurse, advanced registered nurse practitioner, or licensed practical nurse under chapter 18.79 RCW; a naturopathic physician under chapter 18.36A RCW who is licensed under RCW 18.36A.030 subject to any limitations in RCW 18.36A.040; a pharmacist under chapter 18.64 RCW or a scientific investigator under this chapter, licensed, registered or otherwise permitted insofar as is consistent with those licensing laws to distribute, dispense, conduct research with respect to or administer a controlled substance in the course of their professional practice or research in this state.

(2) A pharmacy, hospital or other institution licensed, registered, or otherwise permitted to distribute, dispense, conduct research with respect to or to administer a controlled substance in the course of professional practice or research in this state.

(3) A physician licensed to practice medicine and surgery, a physician licensed to practice osteopathic medicine and surgery, a dentist licensed to practice dentistry, a podiatric physician and surgeon licensed to practice podiatric medicine and surgery, a licensed physician assistant or a licensed osteopathic physician assistant specifically approved to prescribe controlled substances by his or her state's medical quality assurance commission or equivalent and his or her supervising physician, an advanced registered nurse practitioner licensed to prescribe controlled substances, or a veterinarian licensed to practice veterinary medicine in any state of the United States.

(ff) "Prescription" means an order for controlled substances issued by a practitioner duly authorized by law or rule in the state of Washington to prescribe controlled substances within the scope of his or her professional practice for a legitimate medical purpose.

(gg) "Production" includes the manufacturing, planting, cultivating, growing, or harvesting of a controlled substance.

(hh) "Retail outlet" means a location licensed by the state liquor ((control)) and cannabis board for the retail sale of marijuana concentrates, useable marijuana, and marijuana-infused products.

(ii) "Secretary" means the secretary of health or the secretary's designee.

(jj) "State," unless the context otherwise requires, means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a territory or insular possession subject to the jurisdiction of the United States.

(kk) "THC concentration" means percent of delta-9 tetrahydrocannabinol content per dry weight of any part of the plant Cannabis, or per volume or weight of marijuana product, or the combined percent of delta-9 tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of the plant Cannabis regardless of moisture content.

(ll) "Ultimate user" means an individual who lawfully possesses a controlled substance for the individual's own use or for the use of a member of the individual's household or for administering to an animal owned by the individual or by a member of the individual's household.

(mm) "Useable marijuana" means dried marijuana flowers. The term "useable marijuana" does not include either marijuana-infused products or marijuana concentrates.

Sec. 202.  RCW 69.51A.010 and 2010 c 284 s 2 are each amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Designated provider" means a person who((:

(a))) is ((eighteen)) twenty-one years of age or older((;

(b))) and:

(ii) Has been designated in writing by a qualifying patient to serve as a designated provider ((under this chapter)) for that patient;

(c) Is prohibited from consuming marijuana obtained for the personal, medical use of the qualifying patient for whom the individual is acting as designated provider; ((and))

(d) Is in compliance with the terms and conditions of this chapter; and

(e) Is the designated provider to only one patient at any one time.

(2) "Health care professional," for purposes of this chapter only, means a physician licensed under chapter 18.71 RCW, a physician assistant licensed under chapter 18.71A RCW, an osteopathic physician licensed under chapter 18.57 RCW, an osteopathic physicians' assistant licensed under chapter 18.57A RCW, a naturopath licensed under chapter 18.36A RCW, or an advanced registered nurse practitioner licensed under chapter 18.79 RCW.

(3) "Medical use of marijuana" means the production, possession, transportation, delivery, ingestion, application, or administration of marijuana((, as defined in RCW 69.50.101(q),)) for the exclusive benefit of a qualifying patient in the treatment of his or her terminal or debilitating ((illness)) medical condition.

(4) "Qualifying patient" means a person who:

(a)(i) Is a patient of a health care professional;

(((b))) (ii) Has been diagnosed by that health care professional as having a terminal or debilitating medical condition;

(((c))) (iii) Is a resident of the state of Washington at the time of such diagnosis;

(((d))) (iv) Has been advised by that health care professional about the risks and benefits of the medical use of marijuana((; and

(e))) (v) Has been advised by that health care professional that ((they)) he or she may benefit from the medical use of marijuana; and

(b) "Qualifying patient" does not include a person who is actively being supervised for a criminal conviction by a corrections agency or department that has determined that the terms of this chapter are inconsistent with and contrary to his or her supervision and all related processes and procedures related to that supervision.

(5) (("Tamper-resistant paper" means paper that meets one or more of the following industry-recognized features:

(6))) "Terminal or debilitating medical condition" means a condition severe enough to significantly interfere with the patient's activities of daily living and ability to function, which can be objectively assessed and evaluated and limited to the following:

(a) Cancer, human immunodeficiency virus (HIV), multiple sclerosis, epilepsy or other seizure disorder, or spasticity disorders; ((or))

(b) Intractable pain, limited for the purpose of this chapter to mean pain unrelieved by standard medical treatments and medications; ((or))

(c) Glaucoma, either acute or chronic, limited for the purpose of this chapter to mean increased intraocular pressure unrelieved by standard treatments and medications; ((or))

(d) Crohn's disease with debilitating symptoms unrelieved by standard treatments or medications; ((or))

(e) Hepatitis C with debilitating nausea or intractable pain unrelieved by standard treatments or medications; ((or))

(f) Diseases, including anorexia, which result in nausea, vomiting, wasting, appetite loss, cramping, seizures, muscle spasms, or spasticity, when these symptoms are unrelieved by standard treatments or medications;

(g) Posttraumatic stress disorder; or

(((g))) (h) Any other medical condition duly approved by the Washington state medical quality assurance commission in consultation with the board of osteopathic medicine and surgery as directed in this chapter.

(b) Proof of identity such as a Washington state driver's license or identicard, as defined in RCW 46.20.035)) (6) "CBD concentration" means the percent of cannabidiol content per dry weight of any part of the plant Cannabis, or per volume or weight of marijuana product.

(19) "Medical grade marijuana" means marijuana concentrates, useable marijuana, marijuana-infused products, and plants that are identified under section 308 of this act as beneficial to qualifying patients.

Sec. 203.  RCW 66.08.012 and 2012 c 117 s 265 are each amended to read as follows:

There shall be a board, known as the "Washington state liquor ((control)) and cannabis board," consisting of three members, to be appointed by the governor, with the consent of the senate, who shall each be paid an annual salary to be fixed by the governor in accordance with the provisions of RCW 43.03.040. The governor may, in his or her discretion, appoint one of the members as chair of the board, and a majority of the members shall constitute a quorum of the board.

Part III - Licenses

Sec. 301.  RCW 69.50.325 and 2014 c 192 s 2 are each amended to read as follows:

(1) There shall be a marijuana producer's license to produce marijuana and immature marijuana plants for sale at wholesale to marijuana processors and other marijuana producers, regulated by the state liquor ((control)) and cannabis board and subject to annual renewal. The production, possession, delivery, distribution, and sale of marijuana and immature marijuana plants in accordance with the provisions of this 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.

(2) There shall be a marijuana processor's license to process, package, and label marijuana concentrates, useable marijuana, immature marijuana plants, and marijuana-infused products for sale at wholesale to marijuana processors and marijuana retailers, regulated by the state liquor ((control)) and cannabis board and subject to annual renewal. The processing, packaging, possession, delivery, distribution, and sale of marijuana, useable marijuana, marijuana-infused products, immature marijuana plants, and marijuana concentrates in accordance with the provisions of this 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 marijuana concentrates, useable marijuana, immature marijuana plants, and marijuana-infused products at retail in retail outlets, regulated by the state liquor ((control)) and cannabis board and subject to annual renewal. The possession, delivery, distribution, and sale of marijuana concentrates, useable marijuana, immature marijuana plants, and marijuana-infused products in accordance with the provisions of this chapter ((3, Laws of 2013)) and chapter 69.51A RCW and the rules adopted to implement and enforce ((it)) these chapters, 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 marijuana concentrates, useable marijuana, and marijuana-infused products.

Sec. 302.  RCW 69.50.331 and 2013 c 3 s 6 are each amended to read as follows:

(1) For the purpose of considering any application for a license to produce, process, or sell marijuana, or for the renewal of a license to produce, process, or sell marijuana, the state liquor ((control)) and cannabis board must conduct a comprehensive, fair, and impartial evaluation of the applications timely received.

(b) The state liquor and cannabis board may cause an inspection of the premises to be made, and may inquire into all matters in connection with the construction and operation of the premises. For the purpose of reviewing any application for a license and for considering the denial, suspension, revocation, or renewal or denial thereof, of any license, the state liquor ((control)) and cannabis board may consider any prior criminal conduct of the applicant including an administrative violation history record with the state liquor ((control)) and cannabis board and a criminal history record information check. The state liquor ((control)) and cannabis board may submit the criminal history record information check to the Washington state patrol and to the identification division of the federal bureau of investigation in order that these agencies may search their records for prior arrests and convictions of the individual or individuals who filled out the forms. The state liquor ((control)) and cannabis board shall require fingerprinting of any applicant whose criminal history record information check is submitted to the federal bureau of investigation. The provisions of RCW 9.95.240 and of chapter 9.96A RCW shall not apply to these cases. Subject to the provisions of this section, the state liquor ((control)) and cannabis board may, in its discretion, grant or deny the renewal or license applied for. Denial may be based on, without limitation, the existence of chronic illegal activity documented in objections submitted pursuant to subsections (7)(c) and (9) of this section. Authority to approve an uncontested or unopposed license may be granted by the state liquor ((control)) and cannabis board to any staff member the board designates in writing. Conditions for granting this authority shall be adopted by rule.

(c) No license of any kind may be issued to:

(((a))) (i) A person under the age of twenty-one years;

(((b))) (ii) A person doing business as a sole proprietor who has not lawfully resided in the state for at least three months prior to applying to receive a license;

(((c))) (iii) A partnership, employee cooperative, association, nonprofit corporation, or corporation unless formed under the laws of this state, and unless all of the members thereof are qualified to obtain a license as provided in this section; or

(((d))) (iv) A person whose place of business is conducted by a manager or agent, unless the manager or agent possesses the same qualifications required of the licensee.

(2)(a) The state liquor ((control)) and cannabis board may, in its discretion, subject to the provisions of RCW 69.50.334, suspend or cancel any license; and all protections of the licensee from criminal or civil sanctions under state law for producing, processing, or selling marijuana, useable marijuana, or marijuana-infused products thereunder shall be suspended or terminated, as the case may be.

(b) The state liquor ((control)) and cannabis board shall immediately suspend the license of a person who has been certified pursuant to RCW 74.20A.320 by the department of social and health services as a person who is not in compliance with a support order. If the person has continued to meet all other requirements for reinstatement during the suspension, reissuance of the license shall be automatic upon the state liquor ((control)) and cannabis board's receipt of a release issued by the department of social and health services stating that the licensee is in compliance with the order.

(c) The state liquor ((control)) and cannabis board may request the appointment of administrative law judges under chapter 34.12 RCW who shall have power to administer oaths, issue subpoenas for the attendance of witnesses and the production of papers, books, accounts, documents, and testimony, examine witnesses, and to receive testimony in any inquiry, investigation, hearing, or proceeding in any part of the state, under rules and regulations the state liquor ((control)) and cannabis board may adopt.

(d) Witnesses shall be allowed fees and mileage each way to and from any inquiry, investigation, hearing, or proceeding at the rate authorized by RCW 34.05.446. Fees need not be paid in advance of appearance of witnesses to testify or to produce books, records, or other legal evidence.

(e) In case of disobedience of any person to comply with the order of the state liquor ((control)) and cannabis board or a subpoena issued by the state liquor ((control)) and cannabis board, or any of its members, or administrative law judges, or on the refusal of a witness to testify to any matter regarding which he or she may be lawfully interrogated, the judge of the superior court of the county in which the person resides, on application of any member of the board or administrative law judge, shall compel obedience by contempt proceedings, as in the case of disobedience of the requirements of a subpoena issued from said court or a refusal to testify therein.

(3) Upon receipt of notice of the suspension or cancellation of a license, the licensee shall forthwith deliver up the license to the state liquor ((control)) and cannabis board. Where the license has been suspended only, the state liquor ((control)) and cannabis board shall return the license to the licensee at the expiration or termination of the period of suspension. The state liquor ((control)) and cannabis board shall notify all other licensees in the county where the subject licensee has its premises of the suspension or cancellation of the license; and no other licensee or employee of another licensee may allow or cause any marijuana, useable marijuana, or marijuana-infused products to be delivered to or for any person at the premises of the subject licensee.

(4) Every license issued under chapter 3, Laws of 2013 shall be subject to all conditions and restrictions imposed by chapter 3, Laws of 2013 or by rules adopted by the state liquor ((control)) and cannabis board to implement and enforce chapter 3, Laws of 2013. All conditions and restrictions imposed by the state liquor ((control)) and cannabis board in the issuance of an individual license shall be listed on the face of the individual license along with the trade name, address, and expiration date.

(5) Every licensee shall post and keep posted its license, or licenses, in a conspicuous place on the premises.

(6) No licensee shall employ any person under the age of twenty-one years.

(7)(a) Before the state liquor ((control)) and cannabis board issues a new or renewed license to an applicant it shall give notice of the application to the chief executive officer of the incorporated city or town, if the application is for a license within an incorporated city or town, or to the county legislative authority, if the application is for a license outside the boundaries of incorporated cities or towns.

(b) The incorporated city or town through the official or employee selected by it, or the county legislative authority or the official or employee selected by it, shall have the right to file with the state liquor ((control)) and cannabis board within twenty days after the date of transmittal of the notice for applications, or at least thirty days prior to the expiration date for renewals, written objections against the applicant or against the premises for which the new or renewed license is asked. The state liquor ((control)) and cannabis board may extend the time period for submitting written objections.

(c) The written objections shall include a statement of all facts upon which the objections are based, and in case written objections are filed, the city or town or county legislative authority may request, and the state liquor ((control)) and cannabis board may in its discretion hold, a hearing subject to the applicable provisions of Title 34 RCW. If the state liquor ((control)) and cannabis board makes an initial decision to deny a license or renewal based on the written objections of an incorporated city or town or county legislative authority, the applicant may request a hearing subject to the applicable provisions of Title 34 RCW. If a hearing is held at the request of the applicant, state liquor ((control)) and cannabis board representatives shall present and defend the state liquor ((control)) and cannabis board's initial decision to deny a license or renewal.

(d) Upon the granting of a license under this title the state liquor ((control)) and cannabis board shall send written notification to the chief executive officer of the incorporated city or town in which the license is granted, or to the county legislative authority if the license is granted outside the boundaries of incorporated cities or towns.

(8)(a) Except as provided in (b) of this subsection, the state liquor ((control)) and cannabis board shall not issue a license for any premises within one thousand feet of the perimeter of the grounds of any elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, or library, or any game arcade admission to which is not restricted to persons aged twenty-one years or older.

(9) In determining whether to grant or deny a license or renewal of any license, the state liquor ((control)) and cannabis board shall give substantial weight to objections from an incorporated city or town or county legislative authority based upon chronic illegal activity associated with the applicant's operations of the premises proposed to be licensed or the applicant's operation of any other licensed premises, or the conduct of the applicant's patrons inside or outside the licensed premises. "Chronic illegal activity" means (a) a pervasive pattern of activity that threatens the public health, safety, and welfare of the city, town, or county including, but not limited to, open container violations, assaults, disturbances, disorderly conduct, or other criminal law violations, or as documented in crime statistics, police reports, emergency medical response data, calls for service, field data, or similar records of a law enforcement agency for the city, town, county, or any other municipal corporation or any state agency; or (b) an unreasonably high number of citations for violations of RCW 46.61.502 associated with the applicant's or licensee's operation of any licensed premises as indicated by the reported statements given to law enforcement upon arrest.

Sec. 303.  RCW 69.50.342 and 2013 c 3 s 9 are each amended to read as follows:

For the purpose of carrying into effect the provisions of this chapter ((3, Laws of 2013)) according to their true intent or of supplying any deficiency therein, the state liquor ((control)) and cannabis board may adopt rules not inconsistent with the spirit of this chapter ((3, Laws of 2013)) as are deemed necessary or advisable. Without limiting the generality of the preceding sentence, the state liquor ((control)) and cannabis board is empowered to adopt rules regarding the following:

(1) The equipment and management of retail outlets and premises where marijuana is produced or processed, and inspection of the retail outlets and premises;

(2) The books and records to be created and maintained by licensees, the reports to be made thereon to the state liquor ((control)) and cannabis board, and inspection of the books and records;

(3) Methods of producing, processing, ((and)) packaging, and transporting marijuana, useable marijuana, marijuana concentrates, immature plants, and marijuana-infused products; conditions of sanitation; safe handling requirements; and standards of ingredients, quality, and identity of marijuana, useable marijuana, marijuana concentrates, immature plants, and marijuana-infused products produced, processed, packaged, or sold by licensees;

(4) Security requirements for retail outlets and premises where marijuana is produced or processed, and safety protocols for licensees and their employees;

(5) Security requirements for marijuana distributor and marijuana delivery licensees, and safety protocols for these licensees and their employees;

(6) Screening, hiring, training, and supervising employees of licensees;

(((6))) (7) Retail outlet locations and hours of operation;

(((7))) (8) Labeling requirements and restrictions on advertisement of marijuana, useable marijuana, marijuana concentrates, and marijuana-infused products for sale in retail outlets;

(((8))) (9) Forms to be used for purposes of this chapter ((3, Laws of 2013)) or the rules adopted to implement and enforce it, the terms and conditions to be contained in licenses issued under this chapter ((3, Laws of 2013)), and the qualifications for receiving a license issued under this chapter ((3, Laws of 2013)), including a criminal history record information check. The state liquor ((control)) and cannabis board may submit any criminal history record information check to the Washington state patrol and to the identification division of the federal bureau of investigation in order that these agencies may search their records for prior arrests and convictions of the individual or individuals who filled out the forms. The state liquor ((control)) and cannabis board shall require fingerprinting of any applicant whose criminal history record information check is submitted to the federal bureau of investigation;

(((9))) (10) Application, reinstatement, and renewal fees for licenses issued under this chapter ((3, Laws of 2013)), and fees for anything done or permitted to be done under the rules adopted to implement and enforce this chapter ((3, Laws of 2013));

(((10))) (11) The manner of giving and serving notices required by this chapter ((3, Laws of 2013)) or rules adopted to implement or enforce it;

(((11))) (12) Times and periods when, and the manner, methods, and means by which, licensees shall transport and deliver marijuana, marijuana concentrates, immature or mature plants, useable marijuana, and marijuana-infused products within the state;

(((12))) (13) Identification, seizure, confiscation, destruction, or donation to law enforcement for training purposes of all marijuana, marijuana concentrates, immature or mature plants, useable marijuana, and marijuana-infused products produced, processed, sold, or offered for sale within this state which do not conform in all respects to the standards prescribed by this chapter ((3, Laws of 2013)) or the rules adopted to implement and enforce ((it: PROVIDED, That nothing in chapter 3, Laws of 2013 shall be construed as authorizing the state liquor control board to seize, confiscate, destroy, or donate to law enforcement marijuana, useable marijuana, or marijuana-infused products produced, processed, sold, offered for sale, or possessed in compliance with the Washington state medical use of cannabis act, chapter 69.51A RCW)) this chapter.

Sec. 304.  RCW 69.50.345 and 2013 c 3 s 10 are each amended to read as follows:

The state liquor ((control)) and cannabis board, subject to the provisions of this 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. Application forms for marijuana producers must request the applicant to state whether the applicant intends to produce medical grade marijuana for sale by marijuana retailers who hold medical marijuana endorsements and the amount of or percentage of canopy the applicant intends to commit to growing medical grade marijuana;

(2) Reconsidering limits on the amount of square feet permitted to be in production on the effective date of this section and increasing the percentage of production space for those marijuana producers who intend to grow medical grade marijuana if the marijuana producer designates the increased production space to medical grade marijuana. If current marijuana producers do not use all the increased production space, the state liquor and cannabis board may reopen the license period for new marijuana producer license applicants but only to those marijuana producers who agree to grow medical grade marijuana for medical marijuana endorsed retail outlets;

(((2))) (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 marijuana concentrates, useable marijuana, and marijuana-infused products to discourage purchases from the illegal market; and

(d) The number of retail outlets holding medical marijuana endorsements necessary to meet the medical needs of qualifying patients. The state liquor and cannabis board must reconsider the maximum number of retail outlets it established before the effective date of this section and allow for a new license application period and a greater number of retail outlets to be permitted in order to accommodate the medical needs of qualifying patients and designated providers;

(((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, marijuana concentrates, 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 marijuana concentrates, 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) through (5) of)) this section, the state liquor ((control)) and cannabis board shall take into consideration:

(a) Security and safety issues;

(b) The provision of adequate access to licensed sources of marijuana, marijuana concentrates, 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, marijuana concentrates, 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, marijuana concentrates, useable marijuana, or marijuana-infused product;

(b) Lot numbers of the marijuana, marijuana concentrates, useable marijuana, or marijuana-infused product;

(c) THC concentration of the marijuana, marijuana concentrates, 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, marijuana concentrates, 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)) and cannabis board;

(((9))) (10) Establishing reasonable time, place, and manner restrictions and requirements regarding advertising of marijuana, marijuana concentrates, useable marijuana, and marijuana-infused products that are not inconsistent with the provisions of this 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; and

(d) Ensuring that retail outlets with medical marijuana endorsements may advertise themselves as medical retail outlets;

(((10))) (11) Specifying and regulating the time and periods when, and the manner, methods, and means by which, licensees shall transport and deliver marijuana, marijuana concentrates, 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)) and cannabis board, and prescribing methods of producing, processing, and packaging marijuana, marijuana concentrates, useable marijuana, and marijuana-infused products; conditions of sanitation; and standards of ingredients, quality, and identity of marijuana, marijuana concentrates, 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, marijuana concentrates, 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 this chapter ((3, Laws of 2013)) or the rules of the state liquor ((control)) and cannabis board.

Sec. 305.  RCW 69.50.348 and 2013 c 3 s 11 are each amended to read as follows:

(1) On a schedule determined by the state liquor ((control)) and cannabis board, every licensed marijuana producer and processor must submit representative samples of marijuana, marijuana concentrates, useable marijuana, or marijuana-infused products produced or processed by the licensee to an independent, third-party testing laboratory meeting the accreditation requirements established by the state liquor ((control)) and cannabis board, for inspection and testing to certify compliance with standards adopted by the state liquor ((control)) and cannabis board. Any sample remaining after testing shall be destroyed by the laboratory or returned to the licensee.

(2) Licensees must submit the results of this inspection and testing to the state liquor ((control)) and cannabis board on a form developed by the state liquor ((control)) and cannabis board.

(3) If a representative sample inspected and tested under this section does not meet the applicable standards adopted by the state liquor ((control)) and cannabis board, the entire lot from which the sample was taken must be destroyed.

Sec. 306.  RCW 69.50.351 and 2013 c 3 s 12 are each amended to read as follows:

Except as provided by chapter 42.52 RCW, no member of the state liquor ((control)) and cannabis board and no employee of the state liquor ((control)) and cannabis board shall have any interest, directly or indirectly, in the producing, processing, or sale of marijuana, marijuana concentrates, useable marijuana, immature plants, or marijuana-infused products, or derive any profit or remuneration from the sale of marijuana, marijuana concentrates, useable marijuana, immature plants, or marijuana-infused products other than the salary or wages payable to him or her in respect of his or her office or position, and shall receive no gratuity from any person in connection with the business.

Sec. 307.  RCW 69.50.354 and 2014 c 192 s 3 are each amended to read as follows:

There may be licensed, in no greater number in each of the counties of the state than as the state liquor ((control)) and cannabis board shall deem advisable, retail outlets established for the purpose of making marijuana concentrates, immature plants, useable marijuana, and marijuana-infused products available for sale to adults aged twenty-one and over. Retail sale of marijuana concentrates, immature plants, useable marijuana, and marijuana-infused products in accordance with ((the provisions of)) this chapter ((3, Laws of 2013)) and the rules adopted to implement and enforce it, by a validly licensed marijuana retailer or retail outlet employee, shall not be a criminal or civil offense under Washington state law.

NEW SECTION.  Sec. 308.  A new section is added to chapter 69.50 RCW to read as follows:

(1) A medical marijuana endorsement to a marijuana retail license is hereby established to permit a marijuana retailer to sell medical grade marijuana to persons over the age of twenty-one or to persons holding waiver cards as provided in sections 602 and 603 of this act.

(2) An applicant may apply for a medical marijuana endorsement concurrently with an application for a marijuana retail license.

(3) To be issued an endorsement, a marijuana retailer must:

(a) Not authorize the medical use of marijuana for qualifying patients at the retail outlet or permit health care professionals to authorize the medical use of marijuana for qualifying patients at the retail outlet;

(b) Carry medical grade marijuana identified by the state liquor and cannabis board under subsection (5) of this section;

(c) Not use labels or market marijuana concentrates, useable marijuana, immature plants, or marijuana-infused products in a way that make them intentionally attractive to minors;

(d) Keep copies of the qualifying patient's or designated provider's waiver card, or keep equivalent records as required by rule of the state liquor and cannabis board or the department of revenue to document the validity of tax exempt sales under RCW 69.50.535; and

(e) Meet other requirements as adopted by rule of the department or the state liquor and cannabis board.

(4) A marijuana retailer holding a medical marijuana endorsement may sell or provide at no charge products with a THC concentration of 0.3 percent or less to qualifying patients or designated providers who possess valid waiver cards.

(5) The state liquor and cannabis board must, in consultation with the department and the department of agriculture, establish a medical grade standard and identify medical grade marijuana products that may be sold to qualifying patients or designated providers under a medical marijuana endorsement. These rules must include:

(a) THC concentration, CBD concentration, and THC to CBD ratios appropriate for marijuana concentrates, immature plants, useable marijuana, or marijuana-infused products sold to qualifying patients;

(b) Labeling requirements for medical grade marijuana;

(c) The number and type of medical grade marijuana products that must be offered at medical marijuana endorsed stores;

(d) Safe handling requirements for products intended for medical use;

(e) Laboratory testing requirements for products intended for medical use to ensure medical grade marijuana products meet the medical grade standard, including requirements for molds, pesticides, and other contaminants; and

(f) Other product requirements the state liquor and cannabis board determines necessary to address the medical needs of qualifying patients.

(6) A marijuana retailer holding an endorsement to sell medical grade marijuana to qualifying patients must train its employees on recognition of valid waiver cards as well as strains, varieties, THC concentration, CBD concentration, and THC to CBD ratios of marijuana concentrates, useable marijuana, and marijuana-infused products, available for sale when assisting qualifying patients and designated providers at the retail outlet. To meet the requirements of this subsection, the marijuana retailer may employ a medical marijuana consultant, certified by the department under section 611 of this act. The medical marijuana consultant must be available on the retail outlet premises during business hours to provide advice to consumers on the potential medical benefits of marijuana.

Sec. 309.  RCW 69.50.357 and 2014 c 192 s 4 are each amended to read as follows:

(1)(a) Retail outlets ((shall)) may sell ((no products or services other than)) marijuana concentrates, useable marijuana, marijuana-infused products, ((or)) immature plants, products containing THC with a THC concentration of 0.3 percent or less, and other nonedible consumer goods including, but not limited to, clothing with the retail outlet's name or logo on it. Retail outlets may also sell paraphernalia intended for the storage or use of marijuana concentrates, useable marijuana, or marijuana-infused products.

(2) Licensed marijuana retailers shall not employ persons under twenty-one years of age or allow persons under twenty-one years of age to enter or remain on the premises of a retail outlet. However, qualifying patients between eighteen and twenty-one years of age who hold waiver cards may enter and remain on the premises of a retail outlet holding a medical marijuana endorsement and may purchase products for their personal medical use.

(b) Licensed marijuana retailers with a medical marijuana endorsement must ensure that all employees are trained on the subjects required by (a) of this subsection as well as identification of waiver cards issued under section 602 of this act. Employees must also be trained to permit qualifying patients who hold waiver cards and are between the ages of eighteen and twenty-one to enter the premises and purchase marijuana for their personal medical use.

(((3))) (4) Licensed marijuana retailers shall not display any signage in a window, on a door, or on the outside of the premises of a retail outlet that is visible to the general public from a public right-of-way, other than a single sign no larger than one thousand six hundred square inches identifying the retail outlet by the licensee's business or trade name. Retail outlets that hold medical marijuana endorsements may include this information on signage.

(((4))) (5) Licensed marijuana retailers shall not display marijuana concentrates, immature plants, useable marijuana, or marijuana-infused products in a manner that is visible to the general public from a public right-of-way.

(((5))) (6) No licensed marijuana retailer or employee of a retail outlet shall open or consume, or allow to be opened or consumed, any marijuana concentrates, useable marijuana, or marijuana-infused product on the outlet premises.

(((6))) (7) The state liquor ((control)) and cannabis board shall fine a licensee one thousand dollars for each violation of any subsection of this section. Fines collected under this section must be deposited into the dedicated marijuana fund created under RCW 69.50.530.

Sec. 310.  RCW 69.50.360 and 2014 c 192 s 5 are each amended to read as follows:

The following acts, when performed by a validly licensed marijuana retailer or employee of a validly licensed retail outlet in compliance with rules adopted by the state liquor ((control)) and cannabis board to implement and enforce this chapter ((3, Laws of 2013)), shall not constitute criminal or civil offenses under Washington state law:

(1) Purchase and receipt of marijuana concentrates, useable marijuana, immature plants, or marijuana-infused products that have been properly packaged and labeled from a marijuana processor validly licensed under this chapter ((3, Laws of 2013));

(2) Possession of quantities of marijuana concentrates, useable marijuana, immature plants, or marijuana-infused products that do not exceed the maximum amounts established by the state liquor ((control)) and cannabis board under RCW 69.50.345(((5))) (6); ((and))

(3) Delivery, distribution, and sale, on the premises of the retail outlet, of any combination of the following amounts of marijuana concentrates, useable marijuana, immature plants, or marijuana-infused product to any person twenty-one years of age or older:

(a) One ounce of useable marijuana;

(b) Sixteen ounces of marijuana-infused product in solid form;

(c) Seventy-two ounces of marijuana-infused product in liquid form; ((or))

(d) Seven grams of marijuana concentrate; or

(4) Resale or return of mature plants to a marijuana producer or marijuana processor.

Recommendations must be reported to the chairs of the health care committees of both the house of representatives and the senate by December 1, 2015.

NEW SECTION.  Sec. 312.  A new section is added to chapter 69.50 RCW to read as follows:

(1) There shall be a marijuana research license that permits a licensee to produce and possess marijuana for the following limited research purposes:

(a) To test chemical potency and composition levels;

(b) To conduct clinical investigations of marijuana-derived drug products;

(c) To conduct research on the efficacy and safety of administering marijuana as part of medical treatment; and

(d) To conduct genomic or agricultural research.

(2) As part of the application process for a marijuana research license, an applicant must submit to the life sciences discovery fund authority a description of the research that is intended to be conducted. The life sciences discovery fund authority must review the project and determine that it meets the requirements of subsection (1) of this section. If the life sciences discovery fund authority determines that the research project does not meet the requirements of subsection (1) of this section, the application must be denied.

(3) A marijuana research licensee may only sell marijuana grown or within its operation to other marijuana research licensees. The state liquor and cannabis board may revoke a marijuana research license for violations of this subsection.

(4) A marijuana research licensee may contract with the University of Washington or Washington State University to perform research in conjunction with the university. All research projects must be approved by the life sciences discovery fund authority and meet the requirements of subsection (1) of this section.

(5) In establishing a marijuana research license, the state liquor and cannabis board may adopt rules on the following:

(a) Application requirements;

(b) Marijuana research license renewal requirements, including whether additional research projects may be added or considered;

(c) Conditions for license revocation;

(d) Security measures to ensure marijuana is not diverted to purposes other than research;

(e) Amount of plants, useable marijuana, marijuana concentrates, or marijuana-infused products a licensee may have on its premises;

(f) Licensee reporting requirements;

(g) Conditions under which marijuana grown by marijuana processors may be donated to marijuana research licensees; and

(h) Additional requirements deemed necessary by the state liquor and cannabis board.

(6) The production, possession, delivery, donation, and sale of marijuana in accordance with this section and the rules adopted to implement and enforce it, by a validly licensed marijuana researcher, shall not be a criminal or civil offense under Washington state law. Every marijuana research license shall be issued in the name of the applicant, shall specify the location at which the marijuana researcher 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.

(7) The application fee for a marijuana research license is two hundred fifty dollars. The annual fee for issuance and renewal of a marijuana research license is one thousand dollars. Fifty percent of the application fee and the renewal fee must be deposited to the life sciences discovery fund under RCW 43.350.070.

Sec. 313.  RCW 28B.20.502 and 2011 c 181 s 1002 are each amended to read as follows:

(1) The University of Washington and Washington State University may conduct scientific research on the efficacy and safety of administering ((cannabis)) marijuana as part of medical treatment. As part of this research, the University of Washington and Washington State University may develop and conduct studies to ascertain the general medical safety and efficacy of ((cannabis)) marijuana, and may develop medical guidelines for the appropriate administration and use of ((cannabis)) marijuana.

Sec. 314.  RCW 43.350.030 and 2005 c 424 s 4 are each amended to read as follows:

In addition to other powers and duties prescribed in this chapter, the authority is empowered to:

(1) Use public moneys in the life sciences discovery fund, leveraging those moneys with amounts received from other public and private sources in accordance with contribution agreements, to promote life sciences research;

(2) Solicit and receive gifts, grants, and bequests, and enter into contribution agreements with private entities and public entities other than the state to receive moneys in consideration of the authority's promise to leverage those moneys with amounts received through appropriations from the legislature and contributions from other public entities and private entities, in order to use those moneys to promote life sciences research. Nonstate moneys received by the authority for this purpose shall be deposited in the life sciences discovery fund created in RCW 43.350.070;

(3) Hold funds received by the authority in trust for their use pursuant to this chapter to promote life sciences research;

(4) Manage its funds, obligations, and investments as necessary and as consistent with its purpose including the segregation of revenues into separate funds and accounts;

(5) Make grants to entities pursuant to contract for the promotion of life sciences research to be conducted in the state. Grant agreements shall specify deliverables to be provided by the recipient pursuant to the grant. The authority shall solicit requests for funding and evaluate the requests by reference to factors such as: (a) The quality of the proposed research; (b) its potential to improve health outcomes, with particular attention to the likelihood that it will also lower health care costs, substitute for a more costly diagnostic or treatment modality, or offer a breakthrough treatment for a particular disease or condition; (c) its potential for leveraging additional funding; (d) its potential to provide health care benefits or benefit human learning and development; (e) its potential to stimulate the health care delivery, biomedical manufacturing, and life sciences related employment in the state; (f) the geographic diversity of the grantees within Washington; (g) evidence of potential royalty income and contractual means to recapture such income for purposes of this chapter; and (h) evidence of public and private collaboration;

(6) Create one or more advisory boards composed of scientists, industrialists, and others familiar with life sciences research; ((and))

(7) Review and approve or disapprove marijuana research license applications under section 312 of this act;

(9) Adopt policies and procedures to facilitate the orderly process of grant application, review, and reward.

NEW SECTION.  Sec. 315.  A new section is added to chapter 42.56 RCW to read as follows:

Reports submitted by marijuana research licensees in accordance with rules adopted by the state liquor and cannabis board under section 312 of this act that contain proprietary information are exempt from disclosure under this chapter.

NEW SECTION.  Sec. 316.  A new section is added to chapter 69.50 RCW to read as follows:

(1) There shall be a marijuana distribution license that permits a licensee to transport:

(a) Marijuana and immature plants from marijuana producers to marijuana processors and other marijuana producers;

(b) Marijuana concentrates, useable marijuana, immature plants, and marijuana-infused products from marijuana processors to marijuana retailers and other marijuana processors;

(c) Plants from marijuana retailers that are being returned to marijuana producers or marijuana processors;

(d) Marijuana grown by marijuana researchers that are being sold to other marijuana researchers; and

(e) Cash and receipts from marijuana producers, marijuana processors, and marijuana retailers to a financial institution.

(2) The state liquor and cannabis board must adopt rules to implement this section. The rules must address, at a minimum, the following:

(a) Hours during which marijuana distribution licensees may deliver marijuana, plants, marijuana concentrates, marijuana-infused products, useable marijuana, and cash and receipts;

(b) Safety standards for marijuana distribution licensees, including requirements relating to the size of the delivery vehicle and what signage is permissible on the vehicle;

(c) Background check requirements for marijuana distribution licensees;

(d) Insurance or bonding requirements for marijuana distribution licensees;

(e) License fees; and

(f) License renewals and suspensions.

(3) Other than remuneration for services rendered, marijuana distribution licensees may not have a financial interest in a marijuana producer, processor, retailer, or research licensee.

(4) The possession and delivery of marijuana in accordance with this section and the rules adopted to implement and enforce it, by a marijuana distribution licensee, shall not be a criminal or civil offense under Washington state law. Every marijuana distribution license shall be issued in the name of the applicant, shall specify a permanent physical location out of which the marijuana distribution 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.

NEW SECTION.  Sec. 317.  A new section is added to chapter 69.50 RCW to read as follows:

(1) There shall be a marijuana delivery license that permits a licensee to transport marijuana concentrates, immature plants, marijuana-infused products, and useable marijuana from a marijuana retailer to a marijuana consumer. 

(2) The state liquor and cannabis board must adopt rules to implement this section. The rules must address, at a minimum, the following:

(a) Hours during which marijuana delivery licensees may deliver marijuana concentrates, immature plants, marijuana-infused products, and useable marijuana;

(b) Safety standards for marijuana delivery licensees, including requirements related to the delivery vehicle and what signage is permissible on the vehicle;

(c) Marijuana delivery licensee identification requirements;

(d) Background check requirements for marijuana delivery licensees;

(e) Insurance or bonding requirements for marijuana delivery licensees;

(f) License fees; and

(g) License renewals and suspensions.

(3) Other than remuneration for services rendered, marijuana delivery licensees may not have a financial interest in a marijuana retailer.

(4) The possession and delivery of marijuana in accordance with this section and the rules adopted to implement and enforce it, by a marijuana delivery licensee, shall not be a criminal or civil offense under Washington state law. Every marijuana delivery license shall be issued in the name of the applicant, shall specify a permanent physical location out of which the marijuana delivery 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.

Part IV - Tax Provisions

NEW SECTION.  Sec. 401.  A new section is added to chapter 82.08 RCW to read as follows:

(1) The tax levied by RCW 82.08.020 shall not apply to:

(a) Sales of marijuana concentrates, useable marijuana, immature plants, or marijuana-infused products with a low THC, high CBD ratio, as established by the department of health under section 308 of this act, by marijuana retailers;

(b) Beginning July 1, 2015, sales of medical grade marijuana, or products containing THC with a THC concentration of 0.3 percent or less by marijuana retailers who hold medical marijuana endorsements under section 308 of this act to qualifying patients or designated providers who hold medical marijuana waiver cards; or

(c) Until September 1, 2015, sales of marijuana concentrates, useable marijuana, marijuana-infused products, or products containing THC with a THC concentration of 0.3 percent or less by collective gardens under RCW 69.51A.085.

(2) Each seller making exempt sales under subsection (1) of this section must maintain information establishing the purchaser's eligibility for the exemption in the form and manner required by the department.

(3) For the purposes of this section, the terms "THC concentration," "marijuana concentrates," "useable marijuana," "marijuana-infused products," and "marijuana retailers" have the meanings provided in RCW 69.50.101 and the terms "qualifying patients," "designated providers," "medical grade marijuana," and "waiver card" have the meanings provided in RCW 69.51A.010.

NEW SECTION.  Sec. 402.  A new section is added to chapter 82.12 RCW to read as follows:

(1) The provisions of this chapter do not apply to:

(a) The use of marijuana concentrates, useable marijuana, immature plants, or marijuana-infused products with a low THC, high CBD ratio, as established by the department of health in section 308 of this act;

(b) The use of marijuana concentrates, useable marijuana, marijuana-infused products, or products containing THC with a THC concentration of 0.3 percent or less in compliance with chapters 69.50 and 69.51A RCW by:

(i) Until September 1, 2015, collective gardens under RCW 69.51A.085 and the qualifying patients participating in the collective gardens;

(ii) Beginning July 1, 2015, qualifying patients or designated providers who hold medical marijuana waiver cards; or

(iii) Beginning July 1, 2015, marijuana retailers who hold a medical marijuana endorsement under chapter 69.50 RCW with respect to medical grade marijuana, or products containing THC with a THC concentration of 0.3 percent or less if such marijuana or product is provided at no charge to a qualifying patient or designated provider who holds a valid waiver card. Each such retailer providing such marijuana or product at no charge must maintain information establishing eligibility for this exemption in the form and manner required by the department.

(2) For the purposes of this section, the terms "THC concentration," "marijuana concentrates," "useable marijuana," "marijuana-infused products," and "marijuana retailers" have the meanings provided in RCW 69.50.101 and the terms "qualifying patients," "designated providers," "medical grade marijuana," and "waiver card" have the meanings provided in RCW 69.51A.010.

(2)(a) This section is the tax preference performance statement for the retail sales and use tax exemptions for marijuana concentrates, useable marijuana, immature plants, and marijuana-infused products purchased by qualifying patients and designated providers provided in sections 401 and 402 of this act. The performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.

(b) The legislature categorizes the tax preference as one intended to accomplish the general purposes indicated in RCW 82.32.808(2)(e).

(c) It is the legislature's specific public policy objective to provide qualifying patients and designated providers a retail sales and use tax exemption on purchases of marijuana concentrates, useable marijuana, and marijuana-infused products for medical use when approved for a waiver by the department of health and for all people purchasing products with a low THC, high CBD ratio.

(d) To measure the effectiveness of the exemption provided in this act in achieving the specific public policy objectives described in (c) of this subsection, the joint legislative audit and review committee must evaluate the actual fiscal impact of the sales and use tax exemption in this act compared to the estimated impact in the fiscal note for this act.

Part V - Penalties

Sec. 501.  RCW 69.50.401 and 2013 c 3 s 19 are each amended to read as follows:

(1) Except as authorized by this chapter, it is unlawful for any person to manufacture, deliver, or possess with intent to manufacture or deliver, a controlled substance.

(2) Any person who violates this section with respect to:

(a) A controlled substance classified in Schedule I or II which is a narcotic drug or flunitrazepam, including its salts, isomers, and salts of isomers, classified in Schedule IV, is guilty of a class B felony and upon conviction may be imprisoned for not more than ten years, or (i) fined not more than twenty-five thousand dollars if the crime involved less than two kilograms of the drug, or both such imprisonment and fine; or (ii) if the crime involved two or more kilograms of the drug, then fined not more than one hundred thousand dollars for the first two kilograms and not more than fifty dollars for each gram in excess of two kilograms, or both such imprisonment and fine;

(b) Amphetamine, including its salts, isomers, and salts of isomers, or methamphetamine, including its salts, isomers, and salts of isomers, is guilty of a class B felony and upon conviction may be imprisoned for not more than ten years, or (i) fined not more than twenty-five thousand dollars if the crime involved less than two kilograms of the drug, or both such imprisonment and fine; or (ii) if the crime involved two or more kilograms of the drug, then fined not more than one hundred thousand dollars for the first two kilograms and not more than fifty dollars for each gram in excess of two kilograms, or both such imprisonment and fine. Three thousand dollars of the fine may not be suspended. As collected, the first three thousand dollars of the fine must be deposited with the law enforcement agency having responsibility for cleanup of laboratories, sites, or substances used in the manufacture of the methamphetamine, including its salts, isomers, and salts of isomers. The fine moneys deposited with that law enforcement agency must be used for such clean-up cost;

(c) Any other controlled substance classified in Schedule I, II, or III, is guilty of a class C felony punishable according to chapter 9A.20 RCW;

(d) A substance classified in Schedule IV, except flunitrazepam, including its salts, isomers, and salts of isomers, is guilty of a class C felony punishable according to chapter 9A.20 RCW; or

(e) A substance classified in Schedule V, is guilty of a class C felony punishable according to chapter 9A.20 RCW.

(3) The production, manufacture, processing, packaging, delivery, distribution, sale, or possession of marijuana in compliance with the terms set forth in ((RCW 69.50.360, 69.50.363, or 69.50.366)) this chapter or chapter 69.51A RCW shall not constitute a violation of this section, this chapter, or any other provision of Washington state law.

Sec. 502.  RCW 69.50.4013 and 2013 c 3 s 20 are each amended to read as follows:

(1) It is unlawful for any person to possess a controlled substance unless the substance was obtained directly from, or pursuant to, a valid prescription or order of a practitioner while acting in the course of his or her professional practice, or except as otherwise authorized by this chapter.

(2) Except as provided in RCW 69.50.4014, any person who violates this section is guilty of a class C felony punishable under chapter 9A.20 RCW.

(3) ((The possession, by a person twenty-one years of age or older, of)) It is not a violation of this section, this chapter, or any other provision of Washington state law for a person twenty-one years of age or older to possess marijuana concentrates, useable marijuana, plants, or marijuana-infused products in amounts that do not exceed ((those set forth in RCW 69.50.360(3) is not a violation of this section, this chapter, or any other provision of Washington state law)):

(b) To share up to one ounce of useable marijuana with another person; remuneration for the provision of this marijuana is prohibited.

Part VI - Medical Use of Marijuana

Sec. 601.  RCW 69.51A.030 and 2011 c 181 s 301 are each amended to read as follows:

(1) The following acts do not constitute crimes under state law or unprofessional conduct under chapter 18.130 RCW, and a health care professional may not be arrested, searched, prosecuted, disciplined, or subject to other criminal sanctions or civil consequences or liability under state law, or have real or personal property searched, seized, or forfeited pursuant to state law, notwithstanding any other provision of law as long as the health care professional complies with subsection (2) of this section:

(a) Advising a patient about the risks and benefits of medical use of ((cannabis)) marijuana or that the patient may benefit from the medical use of ((cannabis)) marijuana; or

(b) Providing ((a patient meeting the criteria established under RCW 69.51A.010(26) with valid documentation, based upon the health care professional's assessment of the patient's medical history and current medical condition, where such use is within a professional standard of care or in the individual health care professional's medical judgment)) information to the department in order to verify that an applicant for a waiver has been diagnosed by the health care professional with a terminal or debilitating medical condition.

(2)(((a) A health care professional may only provide a patient with valid documentation authorizing the medical use of cannabis or register the patient with the registry established in section 901 of this act if he or she has a newly initiated or existing documented relationship with the patient, as a primary care provider or a specialist, relating to the diagnosis and ongoing treatment or monitoring of the patient's terminal or debilitating medical condition, and only after:

(b))) A health care professional who advises a patient on the risks or benefits of the medical use of marijuana shall not:

(ii))) (a) Offer a discount or any other thing of value to a qualifying patient who is a customer of, or agrees to be a customer of, a particular ((licensed dispenser, licensed producer, or licensed processor of cannabis products)) marijuana retailer;

(((iii))) (b) Examine or offer to examine a patient for purposes of diagnosing a terminal or debilitating medical condition and agreeing to verify this condition with the department at a location where ((cannabis)) marijuana is produced, processed, or dispensed; or

(((iv))) (c) Have a business or practice which consists ((solely)) primarily of authorizing the medical use of ((cannabis;

(3) A violation of any provision of subsection (2) of this section constitutes unprofessional conduct under chapter 18.130 RCW)) marijuana.

NEW SECTION.  Sec. 602.  A new section is added to chapter 69.51A RCW to read as follows:

(1)(a) A medical marijuana waiver is established to be issued by the department. The medical marijuana waiver permits a qualifying patient or his or her designated provider to:

(i) Possess and purchase more marijuana concentrates, marijuana-infused products, plants, or useable marijuana than what is permitted under RCW 69.50.4013(3) and up to a combination of the following: (A) Three ounces of useable marijuana; (B) forty-eight ounces of marijuana-infused products in solid form; (C) two hundred sixteen ounces of marijuana-infused products in liquid form; or (D) twenty-one grams of marijuana concentrates. The medical marijuana waiver also permits the qualifying patient or his or her designated provider to grow, in his or her domicile, up to fifteen plants for the personal medical use of the qualifying patient;

(ii) Purchase marijuana concentrates, marijuana-infused products, plants, or useable marijuana without paying sales and use tax; and

(iii) If the waiver is for purchases of high THC products, to be able to purchase those products without paying sales and use tax.

(b) Unless approved by the state liquor and cannabis board and the department, the waiver does not permit a qualifying patient or designated provider to produce marijuana concentrates. The state liquor and cannabis board, in conjunction with the department, may adopt rules permitting waiver holders to produce marijuana concentrates using nonbutane extraction methods. At a minimum, the rules must require that waiver holders who produce marijuana concentrates register this information with the state liquor and cannabis board.

(2) A qualifying patient who is twenty-one years of age or older and who, after consultation with his or her health care professional, determines that the amounts of marijuana concentrates, marijuana-infused products, plants, or useable marijuana permitted under RCW 69.50.4013(3) will not address his or her medical needs may apply to the department for a medical marijuana waiver.

(3) A qualifying patient who, after consultation with his or her health care professional, determines that marijuana products with high THC levels are necessary to address his or her medical needs may apply to the department for a waiver.

(4) A qualifying patient who is between eighteen and twenty-one years of age and who, after consultation with his or her health care professional, determines that he or she wishes to use marijuana for the treatment of his or her terminal or debilitating medical condition may apply to the department for a waiver permitting the patient to purchase marijuana concentrates, marijuana-infused products, useable marijuana, or immature plants at a marijuana retailer holding a medical marijuana endorsement. Unless otherwise specified in the waiver, the patient may only possess the amounts provided under RCW 69.50.4013(3). The patient may also apply to possess up to the amounts provided under subsection (1) of this section if the additional amounts of marijuana are required to treat his or her terminal or debilitating medical condition. 

(5) A parent or guardian of a qualifying patient who is under the age of eighteen and who, after consultation with the minor's health care professional, determines that the minor would benefit from the medical use of marijuana for treatment of the minor's terminal or debilitating medical condition may apply to the department for a waiver permitting the parent or guardian to become the designated provider for the minor. The parent or guardian designated provider may only possess the amounts provided under RCW 69.50.4013 and must have sole control over the minor's marijuana. The minor may possess up to the amount of marijuana that is necessary for his or her next dose. The minor may not purchase products from a marijuana retailer, nor may the minor grow plants for his or her medical use. The parent or guardian may also apply to possess up to the amounts provided under subsection (1) of this section if the additional amounts of marijuana are required to treat the minor's terminal or debilitating medical condition.

NEW SECTION.  Sec. 603.  A new section is added to chapter 69.51A RCW to read as follows:

(1) The department must develop a medical marijuana waiver process in order to process and approve or deny waiver applications submitted under section 602 of this act.

(2) The medical marijuana waiver process must include:

(a) Development of a waiver application. The application must be completed by the qualifying patient if there is not a designated provider or both the designated provider and the qualifying patient for whom the marijuana will be provided. The application must include:

(i) For qualifying patients, a statement that the applicant has a terminal or debilitating medical condition as described in RCW 69.50.101 and that he or she has been diagnosed with that condition by a health care professional;

(ii) For designated providers, a statement that the qualifying patient for whom the applicant intends to provide marijuana has a terminal or debilitating medical condition as described in RCW 69.50.101 and, in the case of designated providers for people under the age of eighteen, have discussed the medical use of marijuana with the diagnosing health care professional;

(iii) A statement that the applicant understands that the department may contact the diagnosing health care professional to confirm the existence of a terminal or debilitating medical condition and that no waiver will be issued if the condition is not confirmed by the health care professional;

(iv) If the amount of marijuana needed for the medical use of the qualifying patient is higher than the amounts listed in RCW 69.50.4013(3), an option for the qualifying patient to request higher amounts up to the amounts provided in section 602 of this act. The need for this higher amount may also be confirmed by the department with the diagnosing health care professional. Higher amounts will not be authorized unless the health care professional confirms the medical need for these higher amounts. 

(b) Development of a waiver card which qualifying patients and designated providers may use to demonstrate they have been approved for a medical marijuana waiver. The card must include:

(i) The name of the qualifying patient or designated provider who applied for and was approved for a waiver;

(ii) If the waiver permits possession of a greater amount of marijuana than what is permitted under RCW 69.50.4013(3), the amount of marijuana concentrates, useable marijuana, marijuana-infused products, and plant for which the qualifying patient or designated provider has been authorized;

(iii) The expiration date of the waiver card.

(3) Approved applicants must be issued a medical marijuana waiver card. The waiver card:

(a) May be provided to law enforcement officers who are engaged in a bona fide specific investigation of suspected marijuana-related activity that may be illegal under Washington state law to confirm the validity of the waiver of the qualifying patient or designated provider;

(b) May be provided to a marijuana retailer holding a medical marijuana endorsement to confirm the validity of the waiver and to allow waiver holders to purchase medical grade marijuana without paying taxes in accordance with sections 401 and 402 of this act;

(c) Is valid for one year after the date of issuance. The waiver card may not be renewed until the qualifying patient has completed a new application. 

NEW SECTION.  Sec. 604.  A new section is added to chapter 42.56 RCW to read as follows:

Medical marijuana waiver applications submitted to the department of health under sections 602 and 603 of this act containing names and other personally identifiable information of qualifying patients and designated providers are exempt from disclosure under this chapter.

NEW SECTION.  Sec. 605.  A new section is added to chapter 69.51A RCW to read as follows:

(1) It is unlawful for a person to knowingly or intentionally:

(a) Create or present a medical marijuana waiver card or to tamper with a medical marijuana waiver card for the purposes of having it accepted by a medical marijuana retailer in order to purchase marijuana as a qualifying patient or designated provider or to grow marijuana in greater amounts than those permitted under RCW 69.50.4013(3);

(b) If a person is a designated provider to a qualifying patient, sell marijuana produced for the qualifying patient to another person, or to donate or supply more than one ounce of useable marijuana produced for the qualifying patient to another person; or

(c) If the person is a qualifying patient, sell marijuana produced by the qualifying patient to another person or to donate or supply more than one ounce of useable marijuana produced for the qualifying patient to another person.

(2) A person who violates this section is guilty of a class C felony and upon conviction may be imprisoned for not more than two years, fined not more than two thousand dollars, or both.

Sec. 606.  RCW 69.51A.040 and 2011 c 181 s 401 are each amended to read as follows:

The medical use of ((cannabis)) marijuana in accordance with the terms and conditions of this chapter does not constitute a crime and a qualifying patient or designated provider in compliance with the terms and conditions of this chapter may not be arrested, prosecuted, or subject to other criminal sanctions or civil consequences, for possession, manufacture, or delivery of, or for possession with intent to manufacture or deliver, ((cannabis)) marijuana under state law, or have real or personal property seized or forfeited for possession, manufacture, or delivery of, or for possession with intent to manufacture or deliver, ((cannabis)) marijuana under state law, and investigating ((peace officers and)) law enforcement ((agencies)) officers may not be held civilly liable for failure to seize ((cannabis)) marijuana in this circumstance, if:

(1)(a) The qualifying patient or designated provider possesses no more than ((fifteen cannabis plants and:

(iii) A combination of useable cannabis and cannabis product that does not exceed a combined total representing possession and processing of no more than twenty-four ounces of useable cannabis)) the amount of marijuana permitted under RCW 69.50.4013.

(b) If a person is both a qualifying patient and a designated provider for another qualifying patient, the person may possess no more than twice the amounts described in (a) of this subsection, whether the marijuana concentrates, plants, useable ((cannabis)) marijuana, and ((cannabis)) marijuana-infused products are possessed individually or in combination between the qualifying patient and his or her designated provider;

(2) The qualifying patient or designated provider presents his or her ((proof of registration with the department of health)) waiver card, to any ((peace)) law enforcement officer who questions the patient or provider regarding his or her medical use of ((cannabis)) marijuana;

(3) The qualifying patient or designated provider ((keeps a copy of his or her proof of registration with the registry established in section 901 of this act and the qualifying patient or designated provider's contact information)) is permitted to possess more marijuana than what is allowed under RCW 69.50.4013(3), he or she keeps a copy of his or her contact information and waiver card posted prominently next to any ((cannabis)) marijuana plants, ((cannabis)) marijuana-infused products, marijuana concentrates, or useable ((cannabis)) marijuana located at his or her residence;

(4) The investigating ((peace)) law enforcement officer does not possess evidence that:

(a) The designated provider has converted ((cannabis)) more than one ounce of marijuana produced or obtained for the qualifying patient for his or her own personal use or benefit; or

(b) The qualifying patient has converted ((cannabis)) more than one ounce of marijuana produced or obtained for his or her own medical use to the qualifying patient's personal, nonmedical use or benefit; and

(5) The investigating peace officer does not possess evidence that the designated provider has served as a designated provider to more than one qualifying patient within a fifteen-day period((; and

(6) The investigating peace officer has not observed evidence of any of the circumstances identified in section 901(4) of this act)).

Sec. 607.  RCW 69.51A.045 and 2011 c 181 s 405 are each amended to read as follows:

A qualifying patient or designated provider in possession of ((cannabis)) plants, marijuana concentrates, useable ((cannabis)) marijuana, or ((cannabis)) marijuana-infused products exceeding the limits set forth in RCW ((69.51A.040(1))) 69.50.4013 but otherwise in compliance with all other terms and conditions of this chapter and chapter 69.50 RCW may establish an affirmative defense to charges of violations of state law relating to ((cannabis)) marijuana through proof at trial, by a preponderance of the evidence, that the qualifying patient's necessary medical use exceeds the amounts set forth in RCW ((69.51A.040(1))) 69.50.4013. An investigating ((peace)) law enforcement officer may seize ((cannabis)) plants, marijuana concentrates, useable ((cannabis)) marijuana, or ((cannabis)) marijuana-infused products exceeding the amounts set forth in RCW ((69.51A.040(1))) 69.50.4013: PROVIDED, That in the case of ((cannabis)) plants, the qualifying patient or designated provider shall be allowed to select the plants that will remain at the location. The officer and his or her law enforcement agency may not be held civilly liable for failure to seize ((cannabis)) marijuana in this circumstance.

Sec. 608.  RCW 69.51A.055 and 2011 c 181 s 1105 are each amended to read as follows:

(1)(a) The arrest and prosecution protections established in RCW 69.51A.040 may not be asserted in a supervision revocation or violation hearing by a person who is supervised by a corrections agency or department, including local governments or jails, that has determined that the terms of this section are inconsistent with and contrary to his or her supervision.

(b) The affirmative defenses established in RCW ((69.51A.043,)) 69.51A.045((, 69.51A.047, and section 407 of this act)) may not be asserted in a supervision revocation or violation hearing by a person who is supervised by a corrections agency or department, including local governments or jails, that has determined that the terms of this section are inconsistent with and contrary to his or her supervision.

(2) ((The provisions of)) RCW 69.51A.040((, 69.51A.085, and 69.51A.025 do)) does not apply to a person who is supervised for a criminal conviction by a corrections agency or department, including local governments or jails, that has determined that the terms of this chapter are inconsistent with and contrary to his or her supervision.

Sec. 609.  RCW 69.51A.060 and 2011 c 181 s 501 are each amended to read as follows:

(1) It shall be a class 3 civil infraction to use or display marijuana intended for medical ((cannabis)) use in a manner or place which is open to the view of the general public.

(2) Nothing in this chapter establishes a right of care as a covered benefit or requires any state purchased health care as defined in RCW 41.05.011 or other health carrier or health plan as defined in Title 48 RCW to be liable for any claim for reimbursement for the medical use of ((cannabis)) marijuana. Such entities may enact coverage or noncoverage criteria or related policies for payment or nonpayment of medical ((cannabis)) marijuana in their sole discretion.

(3) ((Nothing in this chapter requires any health care professional to authorize the medical use of cannabis for a patient.

(4))) Nothing in this chapter requires any accommodation of any on-site medical use of ((cannabis)) marijuana in any place of employment, in any school bus or on any school grounds, in any youth center, in any correctional facility, or smoking ((cannabis)) marijuana in any public place or hotel or motel.

(((5))) (4) Nothing in this chapter authorizes the use of medical ((cannabis)) marijuana by any person who is subject to the Washington code of military justice in chapter 38.38 RCW.

(((6))) (5) Employers may establish drug-free work policies. Nothing in this chapter requires an accommodation for the medical use of ((cannabis)) marijuana if an employer has a drug-free work place.

(8))) (6) No person shall be entitled to claim the protection from arrest and prosecution under RCW 69.51A.040 or the affirmative defense under RCW ((69.51A.043)) 69.51A.045 for engaging in the medical use of ((cannabis)) marijuana in a way that endangers the health or well-being of any person through the use of a motorized vehicle on a street, road, or highway, including violations of RCW 46.61.502 or 46.61.504, or equivalent local ordinances.

Sec. 610.  RCW 69.51A.070 and 2007 c 371 s 7 are each amended to read as follows:

The Washington state medical quality assurance commission in consultation with the board of osteopathic medicine and surgery, or other appropriate agency as designated by the governor, shall accept for consideration petitions submitted to add terminal or debilitating conditions to those included in this chapter. In considering such petitions, the Washington state medical quality assurance commission in consultation with the board of osteopathic medicine and surgery shall include public notice of, and an opportunity to comment in a public hearing upon, such petitions. The Washington state medical quality assurance commission in consultation with the board of osteopathic medicine and surgery may make a preliminary finding of good cause before the public hearing and shall, after hearing, approve or deny such petitions within ((one)) two hundred ((eighty)) ten days of submission. The approval or denial of such a petition shall be considered a final agency action, subject to judicial review.

NEW SECTION.  Sec. 611.  A new section is added to chapter 69.51A RCW to read as follows:

(1) A medical marijuana consultant certificate is hereby established. The department shall adopt rules establishing certification requirements, including:

(a) Products that meet the definition of medical grade marijuana under section 308 of this act;

(b) The medical conditions that constitute terminal or debilitating conditions;

(c) Demonstrated knowledge of this chapter and the rules adopted to implement it;

(d) Training and education requirements relating to the medical use of marijuana; and

(e) Other items deemed necessary and appropriate by the department to ensure medical marijuana consultant certificate holders are able to provide professional advice on the medical use of marijuana.

(2) Medical marijuana consultant certificates are subject to annual renewals and continuing education requirements established by the department.

Part VII - Local Governments

NEW SECTION.  Sec. 701.  A new section is added to chapter 69.50 RCW to read as follows:

(1) Except as provided in subsection (2) of this section, no marijuana producer, marijuana processor, marijuana retailer, or marijuana researcher may locate its premises within one thousand feet of the perimeter of the grounds of any elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, or library, or any game arcade admission to which is not restricted to persons aged twenty-one years or older.

(2) A city, town, or county may adopt an ordinance to decrease to no less than five hundred feet the distance that marijuana producers, marijuana processors, marijuana retailers, or marijuana researchers must be located from recreation centers or facilities, child care centers, public parks, public transit centers, or libraries, or any game arcades admission to which is not restricted to persons aged twenty-one years or older. A city, town, or county may adopt an ordinance to prohibit a marijuana producer, marijuana processor, marijuana retailer, or marijuana researcher from locating its premises up to one thousand feet from a church. 

(3) For the purposes of this section, "church" means a building erected for and used exclusively for religious worship and schooling or other activity in connection therewith.

NEW SECTION.  Sec. 702.  A new section is added to chapter 69.50 RCW to read as follows:

No city, town, or county may adopt, renew, or extend a prohibition or moratorium on marijuana licensees except by ordinance and no such ordinance may take effect unless it is submitted to a vote of the people at a general or special election and approved by a majority of those voting thereon.

Sec. 703.  RCW 69.50.369 and 2013 c 3 s 18 are each amended to read as follows:

(1) No licensed marijuana producer, processor, or retailer shall place or maintain, or cause to be placed or maintained, an advertisement of marijuana, useable marijuana, or a marijuana-infused product in any form or through any medium whatsoever:

(a) Within one thousand feet of the perimeter of a school grounds, playground, recreation center or facility, child care center, public park, or library, or any game arcade admission to which is not restricted to persons aged twenty-one years or older, or if an ordinance has been adopted under section 701 of this act, the minimum distance for these facilities permitted under the ordinance;

(b) On or in a public transit vehicle or public transit shelter; or

(c) On or in a publicly owned or operated property.

(2) Merchandising within a retail outlet is not advertising for the purposes of this section.

(3) This section does not apply to a noncommercial message.

(4) The state liquor ((control)) and cannabis board shall fine a licensee one thousand dollars for each violation of subsection (1) of this section. Fines collected under this subsection must be deposited into the dedicated marijuana fund created under RCW 69.50.530.

Part VIII - Repealers and Effective Dates

(1) RCW 69.51A.005 (Purpose and intent) and 2011 c 181 s 102, 2010 c 284 s 1, 2007 c 371 s 2, & 1999 c 2 s 2;

(2) RCW 69.51A.020 (Construction of chapter) and 2011 c 181 s 103 & 1999 c 2 s 3;

(3) RCW 69.51A.025 (Construction of chapter—Compliance with RCW 69.51A.040) and 2011 c 181 s 413;

(4) RCW 69.51A.043 (Failure to register—Affirmative defense) and 2011 c 181 s 402;

(5) RCW 69.51A.047 (Failure to register or present valid documentation—Affirmative defense) and 2011 c 181 s 406;

(6) RCW 69.51A.090 (Applicability of valid documentation definition) and 2010 c 284 s 5;

(7) RCW 69.51A.140 (Counties, cities, towns—Authority to adopt and enforce requirements) and 2011 c 181 s 1102; and

(8) RCW 69.51A.200 (Evaluation) and 2011 c 181 s 1001.

NEW SECTION.  Sec. 803.  Section 802 of this act takes effect August 1, 2016."

By Senator Kohl-Welles

NOT ADOPTED 2/13/2015

On page 1, line 1 of the title, after "Relating to" strike the remainder of the title and insert "the comprehensive marijuana reform act; amending RCW 69.50.101, 69.51A.010, 66.08.012, 69.50.325, 69.50.331, 69.50.342, 69.50.345, 69.50.348, 69.50.351, 69.50.354, 69.50.357, 69.50.360, 28B.20.502, 43.350.030, 69.50.401, 69.50.4013, 69.51A.030, 69.51A.040, 69.51A.045, 69.51A.055, 69.51A.060, 69.51A.070, and 69.50.369; adding new sections to chapter 69.50 RCW; adding new sections to chapter 42.56 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding new sections to chapter 69.51A RCW; creating new sections; repealing RCW 69.51A.005, 69.51A.020, 69.51A.025, 69.51A.043, 69.51A.047, 69.51A.090, 69.51A.140, 69.51A.200, and 69.51A.085; prescribing penalties; and providing an effective date."

EFFECT: (1) Qualifying Terminal or Debilitating Medical Conditions. The definition for terminal or debilitating medical condition is clarified to mean a condition severe enough to significantly interfere with the patient's activities of daily living and ability to function, which can be objectively assessed and evaluated. Posttraumatic stress disorder (PTSD) is added to the list of qualifying medical conditions. The Medical Quality Assurance Commission has 210 days to act on a petition and may make preliminary findings before a public hearing is held on whether to add new qualifying medical conditions.

(2) Health Care Professionals. Health care professionals may confirm a patient's terminal or debilitating medical condition with the DOH, as needed to verify an applicant's request for a medical marijuana waiver. Health care professionals may advertise marijuana in conjunction with their medical practice, accept remuneration from a licensee, and hold an economic interest in a marijuana enterprise.

(3) Age Requirements. Adults ages 18 to 21 may use medical marijuana if they obtain a DOH waiver. Minors under the age of 18 may use medical marijuana with parental consent and a DOH waiver. Designated providers must be age 21 or older, and be the parent or listed on the DOH waiver. Persons ages 18 to 21, with a DOH waiver card, may be on the premises of a medical marijuana retailer without a parent. Minors may not purchase or grow plants, but a parent or designated provider may grow the marijuana for them.

(4) DOH Waiver Card. A qualifying patient may seek a DOH waiver card if the patient has been diagnosed with a terminal or debilitating medical condition. The waiver card allows the holder to possess medical amounts of product; 18 to 21 year-olds to purchase from retailers with a medical endorsement; and medical purchases to be exempt from sales and use taxes. No medical provider note is necessary, but the DOH may confirm the diagnosis.

(a) The waiver card must include the following: (i) The name of the qualified patient or designated provider; (ii) amounts of marijuana, products, or plants authorized for, if higher than recreational levels; and (iii) the expiration date. Cards are valid for one year and must be renewed with a new application.

(b) It is a class C felony if knowingly or intentionally: (i) A person creates or presents an unauthorized card or tampers with a card; (ii) a designated provider sells marijuana produced for a qualifying patient or gives more than 1 ounce of his or her product away; or (iii) a qualifying patient sells marijuana produced by the patient or donates more than 1 ounce of product produced for the patient.

(5) Possession Amounts. The recreational limit of 1 ounce of useable marijuana, with exceptions for those who grow and those with waiver cards, is retained. Individuals may have up to six plants for personal use or, with a waiver, up to 15 plants for medical use, and up to 8 ounces of usable marijuana if they grow their own plants. With a medical DOH waiver, an individual may possess up to a combination of 3 ounces of useable marijuana; 48 ounces of marijuana-infused product in solid form; 216 ounces of marijuana-infused product in liquid form; or 21 grams of marijuana concentrates; and 15 plants. Adults may obtain a medical waiver for additional amounts or for high THC products. Minors with medical waivers may only possess the amount necessary for their next dose.

(6) Affirmative Defense and Arrest Protection. Patients and designated providers who have DOH waiver cards and are in compliance with the law on medical marijuana are provided arrest protection. Patients and designated providers with a DOH waiver card may assert an affirmative defense for possession in amounts greater than those allowed for recreational use.

(7) Who May Grow Marijuana. Individuals age 21 or older may grow up to six plants in their home and share up to 1 ounce with another person. It is illegal to sell homegrown marijuana. Patients with a waiver may grow up to 15 plants for themselves or designate a provider to grow on their behalf. Patients who grow for themselves may also act as a designated provider for another patient. The LCB must reopen the licensing application process for producers and reconsider the amount of growing space needed to meet the product needs of medical patients. The LCB may issue new licenses if existing producers cannot meet the medical needs.

(8) Who May Sell Medical Marijuana. Licensed retail stores may obtain a medical endorsement to sell products to qualifying patients. The Office of Financial Management and the LCB must determine the number of retail outlets holding medical endorsements that are needed to meet the medical need. A greater number of outlets must be authorized. Retail outlets may advertise their medical endorsements. Retail outlets may sell immature plants and items such as t-shirts and topical products, but may not sell alcohol. Employees at a store with a medical endorsement must take a DOH-approved class regarding medical use of marijuana. Individuals may give, but not sell, up to 1 ounce of marijuana, regardless of the source, to an individual age 21 or older.

(9) Collective Gardens. Collective gardens are eliminated effective August 1, 2016. Current businesses operating as collective gardens must close or become licensed by the LCB.

(10) Regulating Agencies. The Liquor Control Board is renamed the Liquor and Cannabis Board (LCB). The LCB must adopt a competitive, merit-based licensing application system. Experience operating a collective garden, possession of a business license, and a history of paying sales taxes are factors to be considered. The LCB must reopen the licensing application process, and reconsider the amount of growing space needed to meet the product needs of medical patients. LCB may issue new licenses if existing producers cannot meet the medical needs. The DOH develops a waiver application process and a waiver card. The DOH certifies medical marijuana consultants. The LCB and DOH establish medical-grade marijuana standards, adopt standards for safe handling, and testing of products for medical use.

(11) Taxes. There is no sales or use tax on low-THC, high-CBD ratio products, as defined by the DOH. There is no sales or use tax on medical-grade products, high-THC products, or products with a THC level of 0.3 or less, if sold by a retailer with a medical endorsement to a patient or designated provider with a DOH waiver card.

(12) Licenses. Producers, processors, and retailers of medical marijuana must be licensed under the system created for the recreational market. A medical marijuana endorsement is created to sell to medical patients.

(13) Research License. The LCB creates a marijuana research license for testing marijuana; conducting clinical investigations of marijuana-derived drug products; researching the efficacy and safety of administering marijuana for medical treatment; and conducting genomic or agricultural research. Research license applicants must have projects approved by the Life Sciences Discovery Fund Authority. The University of Washington and Washington State University may contract with licensed researchers.

(14) Distribution License. The LCB creates a distribution license to allow third-party carriers to transport products from producers and processors to retailers. They may also transport money earned in the marijuana market to financial institutions.

(15) Delivery License. The LCB creates a delivery license for the transportation of marijuana from retail outlets to consumers.

(16) Medical Specialty Clinics. The DOH must develop by December 1, 2015, recommendations regarding medical specialty clinics that could authorize and dispense or sell marijuana to patients of DOH-certified health care professionals who work on site.

(17) Medical Marijuana Consultants. The DOH must create a medical marijuana consultant certificate and adopt rules on training and educational requirements.

(18) 1000-Foot Buffers. Local governments may adopt ordinances to decrease the buffer zone to 500 feet for recreation centers or facilities, child care centers, public parks, public transit centers, or libraries, or any game arcade for those over age 21. Local governments may add churches to the buffer zones.

(19) Local Government Bans. Local governments may only ban marijuana licensees by an ordinance submitted to the voters in their jurisdictions. Only voter-approved marijuana bans may go into effect.