SB 5284 — Addressing the oversight and regulation of marijuana.

The state liquor and cannabis board must 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, marijuana concentrates, 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 this chapter is subject to all conditions and restrictions imposed by this chapter or by rules adopted by the state liquor and cannabis board to implement and enforce this chapter.

All conditions and restrictions imposed by the state liquor and cannabis board in the issuance of an individual license must be listed on the face of the individual license along with the trade name, address, and expiration date.(5) Every licensee must post and keep posted its license, or licenses, in a conspicuous place on the premises.(6) No licensee may employ any person under the age of twenty-one years.(7)(a) Before the state liquor and cannabis board issues a new or renewed license to an applicant it must 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, or to the tribal government if the application is for a license within Indian country under the jurisdiction of a federally recognized Indian tribe, or to the port authority if the application for a license is located on property owned by a port authority.(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, the tribal government, or port authority has the right to file with the state liquor 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 and cannabis board may extend the time period for submitting written objections upon request from the authority notified by the state liquor and cannabis board.(c) The written objections must 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 and cannabis board may in its discretion hold, a hearing subject to the applicable provisions of Title 34 RCW.

If the state liquor 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 and cannabis board representatives must present and defend the state liquor 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 and cannabis board must 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) through (d) of this subsection, the state liquor and cannabis board may 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.(b) A city, county, or town may permit the licensing of premises within one thousand feet but not less than one hundred feet of the facilities described in (a) of this subsection, except elementary schools, secondary schools, and playgrounds, by enacting an ordinance authorizing such distance reduction, provided that such distance reduction will not negatively impact the jurisdiction's civil regulatory enforcement, criminal law enforcement interests, public safety, or public health.(c) A city, county, or town may permit the licensing of research premises allowed under RCW 69.50.372 within one thousand feet but not less than one hundred feet of the facilities described in (a) of this subsection by enacting an ordinance authorizing such distance reduction, provided that the ordinance will not negatively impact the jurisdiction's civil regulatory enforcement, criminal law enforcement, public safety, or public health.(d) The state liquor and cannabis board may license premises located in compliance with the distance requirements set in an ordinance adopted under (b) or (c) of this subsection.

Before issuing or renewing a research license for premises within one thousand feet but not less than one hundred feet of an elementary school, secondary school, or playground in compliance with an ordinance passed pursuant to (c) of this subsection, the board must ensure that the facility:(i) Meets a security standard exceeding that which applies to marijuana producer, processor, or retailer licensees;(ii) Is inaccessible to the public and no part of the operation of the facility is in view of the general public;

and(iii) Bears no advertising or signage indicating that it is a marijuana research facility.(9) ((Subject to section 1601 of this act,)) A city, town, or county may adopt an ordinance prohibiting a marijuana producer or marijuana processor from operating or locating a business within areas zoned primarily for residential use or rural use with a minimum lot size of five acres or smaller.(10) In determining whether to grant or deny a license or renewal of any license, the state liquor and cannabis board must 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. 3.  RCW 69.50.339 and 2013 c 3 s 8 are each amended to read as follows:(1) If the state liquor ((control)) and cannabis board approves, a license to produce, process, or sell marijuana may be transferred, without charge, to the surviving spouse or domestic partner of a deceased licensee if the license was issued in the names of one or both of the parties.

For the purpose of considering the qualifications of the surviving party to receive a marijuana producer's, marijuana processor's, or marijuana retailer's license, the state liquor ((control)) and cannabis board may require 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.(2) The proposed sale of more than ten percent of the outstanding or issued stock of a corporation licensed under chapter 3, Laws of 2013, or any proposed change in the officers of such a corporation, must be reported to the state liquor ((control)) and cannabis board, and state liquor ((control)) and cannabis board approval must be obtained before the changes are made.

A fee of seventy-five dollars will be charged for the processing of the change of stock ownership or corporate officers.Sec. 4.  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, 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. 5.  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, useable marijuana, or marijuana-infused products, or derive any profit or remuneration from the sale of marijuana, useable marijuana, 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. 6.  RCW 69.50.357 and 2016 c 171 s 1 are each amended to read as follows:(1) Retail outlets may not sell products or services other than marijuana concentrates, useable marijuana, marijuana-infused products, or paraphernalia intended for the storage or use of marijuana concentrates, useable marijuana, or marijuana-infused products.(2) Licensed marijuana retailers may 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.

Fines collected under this section must be deposited into the dedicated marijuana account created under RCW 69.50.530.Sec. 3.  RCW69.50.530.Sec. 7.  RCW 69.50.36969.50.363 and 2015 2ndc sp.s.207 s 7 are each amended to read as follows:The following acts, when performed by a validly licensed marijuana processor or employee of a validly licensed marijuana processor in compliance with rules adopted by the state liquor ((control)) and cannabis board to implement and enforce chapter 3, Laws of 2013, do not constitute criminal or civil offenses under Washington state law:(1) Purchase and receipt of marijuana that has been properly packaged and labeled from a marijuana producer validly licensed under chapter 3, Laws of 2013;(2) Possession, processing, packaging, and labeling of quantities of marijuana, useable marijuana, and marijuana-infused products that do not exceed the maximum amounts established by the state liquor ((control)) and cannabis board under RCW 69.50.345(4);(3) Delivery, distribution, and sale of useable marijuana or marijuana-infused products to a marijuana retailer validly licensed under chapter 3, Laws of 2013;

and(4) Delivery, distribution, and sale of useable marijuana, marijuana concentrates, or marijuana-infused products to a federally recognized Indian tribe as permitted under an agreement between the state and the tribe entered into under RCW 43.06.490.Sec. 8.  RCW 69.50.366 and 2015 c 207 s 8 are each amended to read as follows:The following acts, when performed by a validly licensed marijuana producer or employee of a validly licensed marijuana producer in compliance with rules adopted by the state liquor ((control)) and cannabis board to implement and enforce chapter 3, Laws of 2013, do not constitute criminal or civil offenses under Washington state law:(1) Production or possession of quantities of marijuana that do not exceed the maximum amounts established by the state liquor ((control)) and cannabis board under RCW 69.50.345(3);(2) Delivery, distribution, and sale of marijuana to a marijuana processor or another marijuana producer validly licensed under chapter 3, Laws of 2013;

and(3) Delivery, distribution, and sale of marijuana or useable marijuana to a federally recognized Indian tribe as permitted under an agreement between the state and the tribe entered into under RCW 43.06.490.NEW SECTION.  Sec. 9.  The legislature finds that protecting the state's children, youth, and young adults under the legal age to purchase and consume marijuana, by establishing limited restrictions on the advertising of marijuana and marijuana products, is necessary to assist the state's efforts to discourage and prevent underage consumption and the potential risks associated with underage consumption.

The legislature finds that these restrictions assist the state in maintaining a strong and effective regulatory and enforcement system as specified by the federal government.

The legislature finds this act leaves ample opportunities for licensed marijuana businesses to market their products to those who are of legal age to purchase them, without infringing on the free speech rights of business owners.

Finally, the legislature finds that the state has a substantial and compelling interest in enacting this act aimed at protecting Washington's children, youth, and young adults.Sec. 10.  RCW 69.50.369 and 2015 2nd sp.s.

The advertising rules must be as restrictive as the state and federal guidelineslaws regulating cigarette advertising;

Enforcement of restrictions to advertising by a city, town, or county is the responsibility of the city, town, or county.---county.Sec. 11.  RCW END69.50.372 ---and 2016 sp.s.

c 9 s 1 are each amended to read as follows:(1) A marijuana research license is established that permits a licensee to produce, process, 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 liquor and cannabis board's designated scientific reviewer a description of the research that is intended to be conducted.

The liquor and cannabis board must select a scientific reviewer to review an applicant's research project and determine that it meets the requirements of subsection (1) of this section, as well as assess the following:(a) Project quality, study design, value, or impact;(b) Whether applicants have the appropriate personnel, expertise, facilities/infrastructure, funding, and human/animal/other federal approvals in place to successfully conduct the project;

and(c) Whether the amount of marijuana to be grown by the applicant is consistent with the project's scope and goals.If the scientific reviewer 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 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, not including those projects conducted pursuant to a contract entered into under RCW 28B.20.502(3), must be approved by the scientific reviewer and meet the requirements of subsection (1) of this section.(5) In establishing a marijuana research license, the 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 licensed marijuana producers and other product types from licensed marijuana processors may be donated to marijuana research licensees;

and(h) Additional requirements deemed necessary by the liquor and cannabis board.(6) The production, processing, 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 must be issued in the name of the applicant, must specify the location at which the marijuana researcher intends to operate, which must be within the state of Washington, and the holder thereof may 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.

The applicant must pay the cost of the review process directly to the scientific reviewer as designated by the liquor and cannabis board.(8) The scientific reviewer shall review any reports made by marijuana research licensees under liquor and cannabis board rule and provide the liquor and cannabis board with its determination on whether the research project continues to meet research qualifications under this section.(9) For the purposes of this section, "scientific reviewer" means an organization that convenes or contracts with persons who have the training and experience in research practice and research methodology to determine whether a project meets the criteria for a marijuana research license under this section and to review any reports submitted by marijuana research licensees under liquor and cannabis board rule.

"Scientific reviewers" include, but are not limited to, educational institutions, research institutions, peer review bodies, or such other organizations that are focused on science or research in its day-to-day activities.Sec. 12.  RCW 69.50.500 and 2013 c 3 s 24 are each amended to read as follows:(a) It is hereby made the duty of the ((state board of pharmacy)) commission, the department, the state liquor ((control)) and cannabis board, and their officers, agents, inspectors and representatives, and all law enforcement officers within the state, and of all prosecuting attorneys, to enforce all provisions of this chapter, except those specifically delegated, and to cooperate with all agencies charged with the enforcement of the laws of the United States, of this state, and all other states, relating to controlled substances as defined in this chapter.(b) Employees of the department of health, who are so designated by the ((board)) commission as enforcement officers are declared to be peace officers and shall be vested with police powers to enforce the drug laws of this state, including this chapter.NEW SECTION.  Sec. 13.  A new section is added to chapter 69.50 RCW to read as follows:(1) With written notice to the state liquor and cannabis board, a licensed marijuana business may move furniture or display cases within the controlled point-of-sale areas, subject to later inspection by the state liquor and cannabis board's designated enforcement officers or designated employees.

If such a move occurs, the licensee must maintain a complete video surveillance recording that allows for the clear and certain identification of any person and activities in point-of-sale areas of the licensed premises, from one day before the move and continuing until the board's inspection.

The videos must be copied and provided to the officer or employee upon request.

All recorded images must clearly and accurately display the time and date.(2) If the state liquor and cannabis board discovers the movement of the furniture was made to facilitate or hide an activity that is prohibited by statute or rule, it must institute an investigation and take appropriate actions against the licensee.Sec. 14.  RCW 69.50.580 and 2015 2nd sp.s.

c 4 s 801 are each amended to read as follows:(1) Applicants for a marijuana producer's, marijuana processor's, marijuana researcher's or marijuana retailer's license under this chapter must display a sign provided by the state liquor and cannabis board on the outside of the premises to be licensed notifying the public that the premises are subject to an application for such license.

The sign must:(a) Contain text with content sufficient to notify the public of the nature of the pending license application, the date of the application, the name of the applicant, and contact information for the state liquor and cannabis board;(b) Be conspicuously displayed on, or immediately adjacent to, the premises subject to the application and in the location that is most likely to be seen by the public;(c) Be of a size sufficient to ensure that it will be readily seen by the public;

and(d) Be posted within seven business days of the submission of the application to the state liquor and cannabis board.(2)(a) The state liquor and cannabis board must adopt such rules as are necessary for the implementation of this section, including rules pertaining to the size of the sign and the text thereon, the textual content of the sign, the fee for providing the sign, and any other requirements necessary to ensure that the sign provides adequate notice to the public.(b) After January 1, 2019, the sign required under this section must be at least sixteen hundred square inches, unless the local government with jurisdiction over the licensee adopts an ordinance establishing a different dimension.(c) A city, town, or county may adopt an ordinance requiring the applicant's sign required under this section to be larger or smaller than the dimension specified in this subsection (2).(3)(a) A city, town, or county may adopt an ordinance requiring individual notice by an applicant for a marijuana producer's, marijuana processor's, marijuana researcher's, or marijuana retailer's license under this chapter, sixty days prior to issuance of the license, to any elementary or secondary school, playground, recreation center or facility, child care center, church, public park, public transit center, library, or any game arcade admission to which is not restricted to persons aged twenty-one years or older, that is within one thousand feet of the perimeter of the grounds of the establishment seeking licensure.

The notice must provide the contact information for the liquor and cannabis board where any of the owners or operators of these entities may submit comments or concerns about the proposed business location.(b) For the purposes of this subsection, "church" means a building erected for and used exclusively for religious worship and schooling or other activity in connection therewith.Sec. 15.  RCW 66.08.100 and 2012 c 117 s 269 are each amended to read as follows:No court of the state of Washington other than the superior court of Thurston county shall have jurisdiction over any action or proceeding against the board or any member thereof for anything done or omitted to be done in or arising out of the performance of his or her or their duties under this title.

Neither the board nor any member or members thereof shall be personally liable in any action at law for damages sustained by any person because of any acts performed or done or omitted to be done by the board or any employee of the board in the performance of his or her duties and in the administration of this title or chapter 69.50 or 69.51A RCW.Sec. 16.  RCW 9.94A.832 and 2013 c 270 s 1 are each amended to read as follows:In a criminal case where:(1) The defendant has been convicted of robbery in the first degree or robbery in the second degree;

and(2) There has been a special allegation pleaded and proven beyond a reasonable doubt that the defendant:(a) Committed a robbery of a pharmacy as defined in RCW 18.64.011(((21))) (26);

or(b) Committed a robbery of a business licensed under chapter 69.50 RCW to produce, process, research, transport, deliver, or sell marijuana;the court shall make a finding of fact of the special allegation, or if a jury is had, the jury shall, if it finds the defendant guilty, also find a special verdict as to the special allegation.NEW SECTION.  Sec. 17.  This act applies prospectively only and not retroactively.

It applies only to causes of action that arise (if change is substantive) or that are commenced (if change is procedural) on or after the effective date of this section.--- END ---